Canadian pork exports in H1 2020 were up by 12% y-o-y, driven by high shipments to China, Vietnam and the Philippines.
Y-o-y Canadian pork exports to China, Vietnam and the Philippines increased by 44%, 12025% and 12% respectively in H1 2020. Total exports for the period came to 727,680 tonnes, with shipments to China making up 43% of this volume. However, the growth in shipments to countries mentioned above seems to have been at the expense of other Asian markets, including Japan (-4%), South Korea (-34%) and Taiwan (-40%). Pork shipments to Mexico were also lower.
Despite surging exports in the first six months of 2020, the Canadian pig price this summer was the lowest since 2009, influenced by higher throughputs and coronavirus-related disruption. Also, US imports of Canadian pig reduced in Q2 2020 due to US slaughter plant closures in April and May. Consequently, between mid-May and late June, Mintec’s Canadian pork prices fell by 33%. However, prices have exhibited an uptick since July, with limited breeding activity because of bearish prices.
Canadian pork exports to China in H2 2020 are likely to be driven by competition from other markets, and COVID-19’s impact on global shipments. A few of the Canadian meat processors have voluntarily suspended pork exports to China following COVID-19 outbreaks in their plants.