HAMBURGLLEIDA, June 14 Reuters Europe39;s pork industry faces a nightmare scenario of lower prices and falling profitability if China restricts imports from the region, industry executives and analysts said on Friday.
Chinese firms have asked for an antidumping probe into pork imports from the European Union, statebacked Chinese media reported on Friday, escalating tensions after the bloc imposed antisubsidy duties on Chinesemade electric vehicles.
China imported 6 billion worth of pork, including offal, in 2023 and more than half came from the EU, Chinese customs data showed. Ending those orders would result in a huge loss of business for Europe39;s meat industry.
The full suspension of EU pork exports to China would be a potential nightmare scenario for the pork supply chain, with implications across the EU, said Justin Sherrard, global strategist animal protein at Rabobank.
Sherrard added that the disruption would be felt across pork supply chains in Europe, resulting in lower prices and profit margins on unwanted stock produced by the region39;s farmers.
China buys pig meat including ears, noses and feet, for which there is little demand from European customers. The ability to export those parts of the animal helps generate a higher value for the whole carcass, analysts say.
It would take time, but may be possible for EU exporters to find alternative markets for the pork muscle meat cuts that are currently shipped to China, Sherrard said. However, I doubt…