HAMBURG/LONDON, Oct 21 (Reuters) – Germany’s meat processors are sending pork chops and bacon previously earmarked for Asia to supermarkets across the European Union after China, South Korea and Japan banned German imports due to an outbreak of African Swine Fever in wild boars.
Pig prices in European Union’s top producer slid by around 14% immediately after the outbreak was confirmed on Sept. 10 but have since stabilised, albeit at a lower level, as the disease devastates pig herds across the globe.
Germany’s meat has since been effectively trapped in Europe, displacing supplies from rival producers including Spain, Denmark and the Netherlands who continue to sell huge volumes to China, where millions of animals have been slaughtered.
For German meat processors, the overall margins for selling in Europe are weaker than they would be to China, particularly as they have struggled to find markets for offcuts such as ears and feet which are more popular in Asia than Europe.
Opportunities to sell cuts such as shoulder meat and hams that were originally destined for Asian markets have, however, opened up as rivals focus on satisfying strong demand particularly from China which has a huge appetite for pork.
“We are seeing expansion but this is not enough to compensate for the losses,”Read full article Share on twitter