Audio: If Europe Suffers Pork Shortage, What’s the Global Impact?
Published: Oct 10, 2012
Great Britain’s National Pig Association (NPA) recently issued a dire warning to consumers about the possibility that Europe will see a major shortage of pork products in 2013, noting that all of Europe’s major pork-producing nations have reported declines in the their sow herds over the past year. The NPA says this trend could worsen next year due to higher feed costs, new animal welfare regulations and other factors.
In the attached audio report, USMEF Economist Erin Borror discusses the implications such a shortage could have on global pork trade and on the U.S. industry. She says only a small volume of U.S. pork is exported to Europe due to restrictive production requirements, import quotas and significant duties imposed by the European Union, and this is not expected to change in the near future. But the U.S. pork industry does compete with Europe in some very important, high-value export markets. For this reason, any decline in Europe’s ability to serve customers in these markets could further expand export opportunities for U.S. pork.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. Great Britain’s National Pig Association recently issued dire warnings to consumers about the possibility of a major pork shortage in Europe in 2013 due to higher feed costs, new animal welfare regulations, and other factors. USMEF economist, Erin Borror, provides some details on the situation.
Erin Borror: European pork production is contracting already, and that’s evident through the spike in prices for European pork, which are at or near record levels, averaging, right around, $1.13 per pound. In U.S. dollars, that would be up 19 percent over last year and we look on that on a euro basis, that’s actually up 24 percent from last year; reflecting tight supplies across Europe. But that said, Europe pork exports have remained strong, their exports were still up 7% through July, the weak euro had really helped them this year, it’s helped off-set some of those higher prices. So, when we start hearing press about a pork shortage, there are large ramifications for what happens in Europe, because they are the second largest producer in the world, following China. They are also the largest exporter, right there with the U.S., depending on what products they include.
Joe Schuele: Borror says that due to several trade barriers, very little U.S. pork is exported to Europe and this is not expected to change in the near future. But a pork supply crunch in Europe could open up new opportunities in other markets.
Erin Borror: If Europe ends up producing, say around 3% less pork than last year, they could still remain a very strong exporter and still have relatively steady per capita consumption within the EU. But, it will open up around 600,000 tons of pork that would not be exported from Europe, and this is important because Europe is our main competitor in major U.S. pork markets: Russia, China, Japan, Korea; all of these markets we have in common with Europe.
Joe Schuele: For more on this and other trade issues, please visit usmef.org.
In the attached audio report, USMEF Economist Erin Borror discusses the implications such a shortage could have on global pork trade and on the U.S. industry. She says only a small volume of U.S. pork is exported to Europe due to restrictive production requirements, import quotas and significant duties imposed by the European Union, and this is not expected to change in the near future. But the U.S. pork industry does compete with Europe in some very important, high-value export markets. For this reason, any decline in Europe’s ability to serve customers in these markets could further expand export opportunities for U.S. pork.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. Great Britain’s National Pig Association recently issued dire warnings to consumers about the possibility of a major pork shortage in Europe in 2013 due to higher feed costs, new animal welfare regulations, and other factors. USMEF economist, Erin Borror, provides some details on the situation.
Erin Borror: European pork production is contracting already, and that’s evident through the spike in prices for European pork, which are at or near record levels, averaging, right around, $1.13 per pound. In U.S. dollars, that would be up 19 percent over last year and we look on that on a euro basis, that’s actually up 24 percent from last year; reflecting tight supplies across Europe. But that said, Europe pork exports have remained strong, their exports were still up 7% through July, the weak euro had really helped them this year, it’s helped off-set some of those higher prices. So, when we start hearing press about a pork shortage, there are large ramifications for what happens in Europe, because they are the second largest producer in the world, following China. They are also the largest exporter, right there with the U.S., depending on what products they include.
Joe Schuele: Borror says that due to several trade barriers, very little U.S. pork is exported to Europe and this is not expected to change in the near future. But a pork supply crunch in Europe could open up new opportunities in other markets.
Erin Borror: If Europe ends up producing, say around 3% less pork than last year, they could still remain a very strong exporter and still have relatively steady per capita consumption within the EU. But, it will open up around 600,000 tons of pork that would not be exported from Europe, and this is important because Europe is our main competitor in major U.S. pork markets: Russia, China, Japan, Korea; all of these markets we have in common with Europe.
Joe Schuele: For more on this and other trade issues, please visit usmef.org.