Mintec’s pork prices in the EU fell by 4% m-o-m in early July driven by reduced exports, which developed a backlog of slaughter ready pigs in some EU countries.
In the first week of July, Mintec’s pork price in the German market fell by 6% m-o-m as China suspended pork imports from Germany in June. China has increased imported meat inspections, to avoid COVID-19 spreading through imports, despite no current evidence of the coronavirus transmission through food or food packaging.
Germany is one of the EU’s most crucial pork markets, and any price pressure in the country is likely to have repercussions in other member states. For example, the Netherlands supplies slaughter ready pigs to Germany. The Dutch pork prices plunged by 13% m-o-m in early July as the coronavirus outbreak led to the closure of several German meat processing plants. In addition, a few Dutch meat processing units temporarily have withdrawn their export licenses to China amid the coronavirus outbreak, which caused prices to fall further.
Similarly, the UK pork market is likely to face pressure as most of their carcasses are shipped to Germany. Overall, the EU and the UK pork price outlook will depend on how soon China, their most important export destination, lifts suspensions.