British farmers will soon benefit from a major export deal with China as the United Kingdom’s pork industry taps into growing demand in China for British produce. Seven businesses in England and Northern Ireland will now export pork products to China, including three producers that will, in a UK first, trade trotters, which are a delicacy in China…Full Article: China Daily Aug 2017

Key Point

  • As a result of the agreement between the UK government and China’s CNCA and AQSIQ, seven businesses can now export pork products to China including three based in Suffolk, Lincolnshire, and Derbyshire.

ChinaAg Comments

  • In 2016, according to the UK’s Agriculture and Horticulture Development Board, Britain exported 1.6 million MTs of pork to China. In 2017, the board expects exports to decline owing to an expected increase in Chinese pork production.
  • In November 2016, Shuanghui (WH Group, HKG:0288) acquired Californian pork producer Clougherty Packing [including Farmer John and Saag’s Specialty Meats] for US$145 million. During the same month, Danish Crown (pork processor) announced plans to build a pork processing factory in Shanghai. At the moment, Danish Crown was a raw material (pork) supplier to China, exporting pork, pig toes, ears and tails.
  • From January to October 2016, Chinese pork imports totaled 1.39 million MTs, a ~133% year-on-year increase.
  • In early July 2016, Anhui Province lost approximately 53,100 pigs, 2,350 cows, and 7.28 million heads of poultry due to flooding.
  • In mid-June 2016, Chinese officials will reportedly audit Austrian pork producers for potential export approval.
  • In June 2015, Belgium’s Minister of Agriculture signed a Memorandum of Understanding (MoU) with China that laid the groundwork for potential pork exports to China. Prior to June 2015, only two Belgian pork producers (18% of Belgium’s total pork output) were allowed to export China owing to a 2009 agreement. As a result of the MoU, an additional four companies will be allowed to ship pork to China starting in roughly September 2015.
  • In January 2015, the UK’s Environment Secretary visited China in order to expand British exports such as pork and pig’s trotters (i.e. pig’s feet).
  • In April 2014, China and Denmark signed five agreements that focused primarily on Chinese imports of Danish pork (e.g. sausage), poultry, and dairy products.
  • From November 2013 to August 2015, China lost 100 million boars and 10 million sows (adult female hogs). China’s pig inventory peaked in 2013.
  • From 2010 to 2014, UK pork exports to mainland China increased from just under 2,000 MTs to 28,244 MTs while export to Hong Kong decreased from 17,311 MTs to 16,968 MTs. Overall, in 2014, UK exported more than 45,200 MTs of pork to mainland China and Hong Kong.

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