LONDON: UK pork exports grew 7% in October, compared with a year earlier, reaching 16.6 thousand tonnes. With average unit values comparable to 2016 levels, value was up in line with volume at £23.2 million.
According to AHDB analysis, this growth came despite shipments to China declining a noticeable 31% (940 tonnes) year-on-year, falling from the first to fourth largest UK pork export market. This was the first month since June that UK shipments to China had fallen below year earlier levels. Despite Chinese pork imports overall remaining below 2016 since March, demand for UK product had seemed robust. Whether this decline is the first sign of UK product being affected by the Chinese slowdown remains to be seen. However, Rabobank have recently suggested that there could be some recovery in import demand from China in 2018. This would be from the Eastern and Southern regions where production is declining and a lack of infrastructure means domestic production is not yet competitive.
Nonetheless, in October, exports within the EU more than compensated for the Chinese decline. At 11.8 thousand tonnes, volumes were 22% up on the year. Shipments to Denmark and Germany particularly increased. While from a smaller base, Belgian volumes almost doubled and there was also growth to Sweden, Italy and Poland.
Offal exports also recorded a strong month, growing 20% in volume terms to 7.8 thousand tonnes. Chinese shipments grew a modest 5% (+150 tonnes), and this was supported by shipments to the Philippines more than doubling (+430 tonnes). Despite this, unit prices fell, likely influenced by lower wholesale prices in China this year. As such, in value terms market only increased 9% year-on-year to £7.3 million.
