The EU pork market was reported bullish during the week, with prices increasing compared to the previous week. All of the underlying prices of the EU pork basket increased week-on-week (w-o-w). With all underlying markets moving similarly, increasing domestic consumption along with seasonal expectations and limited pork supply continue to be the key price drivers across the EU. Limited availability and high prices of other animal proteins (beef, lamb and chicken) have added demand into the pork market.
News surrounding a new ASF outbreak in China continues to add nervousness across the EU and global pork market, as there is greater uncertainty about this will impact Chinese demand for pork imports. This week, multiple market sources indicated a potential new outbreak of ASF in China. Although China has increased farming hygiene standards since the last outbreak in 2018/2019, by killing millions of pigs, the virus has continued to circulate around the Chinese market. Following the Lunar New Year Holiday in January, infections continued to increase according to multiple sources, primarily in the northern provinces that are crucial producing regions for pork.
One source stated, “a new larger outbreak could lead to increasing import demand during the second half of the year, as China’s domestic consumption is expected to improve through the year following the lifting of COVID-19 restrictions. However, it seems unlikely that we are going to see such a big outbreak as in 2018.”
The Mintec Benchmark Prices (MBP) for Pig Deadweight Grade S EXW Europe [Mintec Code: BW56] was assessed at €2.38/kg on 28th March, up 4% on the week.