Update on EU Pork, Beef Trade - US Pork

US Pork

Update on EU Pork, Beef Trade

July was a solid month for EU pork exports, with volume (240,519 mt) up 4 percent from a year ago driven by strong growth to Russia (43,943 mt, +33 percent) and Hong Kong (33,620 mt, +9 percent) and steady volumes to China (59,571 mt). Exports through the first seven months of 2013 were steady with last year’s pace at 1.56 million mt. Exports to China were sharply higher (408,920 mt, +29 percent), which offset smaller volumes to Russia (263,823 mt, -1 percent), Hong Kong (222,806 mt, -9 percent), South Korea (65,626 mt, -38 percent), Belarus (45,253 mt, -32 percent) and Ukraine (44,727 mt, -32 percent). Exports to Japan (141,793 mt) were steady.

Supported by tight supplies and strong export demand, July hog prices averaged 7 percent higher than a year ago at 180.40 euro/mt ($107.40/cwt). The stronger euro made the increase even higher in U.S. dollar terms, up 14 percent year-over-year. Prices peaked in September at 195 euro/mt but have moderated this month, declining to 182.68 euro/mt (-5 percent from a year ago, when prices peaked in early October).

EU imports of pork remained minimal through July including lower imports from Chile (3,600 mt, -10 percent) and the U.S. (1,084 mt, -18 percent). The EU imported 9 mt of pork from Canada, up from zero last year.

EU beef/beef variety meat imports were up 8.3 percent through July to 149,185 mt. Brazil was the dominant supplier (63,552 mt, +15 percent) followed by Uruguay (25,739 mt, +2 percent), Argentina (21,569 mt, -10 percent), Australia (10,459 mt, -42 percent), U.S. (9,939 mt, +7 percent), and New Zealand (6,864 mt, -9 percent). EU imports of Canadian beef were one-third higher than a year ago but still totaled just 444 mt, even though Canada currently has access to the duty-free, grain-fed quota.

Chilled beef imports were up 16 percent to 66,039 mt, with growth from all main suppliers except Argentina (steady at 18,542 mt). Imports from the U.S. were up 7 percent to 9,571 mt. Uruguay (11,421 mt, +40 percent) and Australia (9,264 mt, +45 percent) continue to benefit from the duty-free quota, although some chilled volume is also being imported under their respective Hilton quotas. Chilled imports from Brazil were up 30 percent to 11,253 mt, mostly paying full duty.

(Source: Global Trade Atlas)