Source: Rita Jane Gabbett, MEATINGPLACE, 4/14/16


The United States and the European Union combined account for nearly two-thirds of world pork trade. In 2015, the EU surpassed the United States as the world’s leading exporter and is forecast to retain this position in 2016, according to a recent report by USDA’s Foreign Agriculture Service. 

EU’s rise has not come without challenges. In 2013, Russia was the EU’s largest market, accounting for over 20 percent of its total exports. However, Russia imposed import restrictions on the EU in late January 2014 due to outbreaks of African swine fever (ASF), shutting it out of the market. In addition to the disease-based restriction, EU pork was also included in the August 2014 Russian ban on certain agricultural products from the United States, Canada, Australia, EU, and Norway.

Although the EU lost a significant market when banned by Russia, considerable market share has since developed in Asian markets. To offset the loss of Russia, the EU shipped more to Japan during the first half of 2014. In the second half of 2014, gains were made in shipments to both South Korea and China. During 2015, EU pork exports to China increased nearly 82 percent. While Japan, Korea, and China accounted for nearly 38 percent of total EU pork shipments in 2013, these markets rose to nearly 56 percent in 2015.

Impact on U.S. pork exports

EU pork exports to all destinations increased 7 percent from 2013 to 2015 while total U.S. shipments only increased 1 percent. The United States was constrained by the loss of the Russian market, tight supplies due to porcine epidemic diarrhea virus (PEDV), elevated prices, and a strong dollar, all reducing competitiveness against EU pork.

In addition, the EU’s ban on producing pork with beta-agonists allows them greater flexibility in meeting the demands of Asian markets. U.S. pork exports to Japan, Korea, and China declined 5 percent during the 2013 to 2015 period and also accounted for a smaller portion (falling to 36 percent from 40 percent) of total U.S. shipments. As a result, EU expanded not only shipments to key Asian markets in terms of volumes but also market share.

EU gains to continue

Combined pork imports for China, Japan and South Korea are forecast up 11 percent for 2016. Both South Korea and Japan imports are forecast slightly higher (2 percent and 4 percent, respectively) while Chinese imports are forecast 26 percent higher. Stronger demand by these key markets will facilitate the EU remaining the top global pork exporter in 2016.
The United States will continue to be challenged to compete with the EU due to a strong dollar and relatively higher prices. Export expansion is forecast for both the EU and the United States in 2016, however the EU’s rise is expected to be stronger at 9 percent compared to the United States at 5 percent, the agency predicted. 

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