China’s commerce ministry said on Monday it had opened an anti-dumping investigation into imports of pork and pork by-products from the European Union after the bloc imposed anti-subsidy tariffs on Chinese-made electric cars.<\/p>\n
Pork suppliers from South America and the United States could gain market share in China if Beijing restricts imports from the European Union in response to escalating trade tensions, traders and analysts said.<\/p>\n
Russia, an increasingly close trading partner of China that began exporting pork to the country in February, could also increase its shipments.<\/p>\n
China’s commerce ministry said on Monday it had opened an anti-dumping investigation into imports of pork and pork by-products from the European Union after the bloc imposed anti-subsidy tariffs on Chinese-made electric cars.<\/p>\n
The impact on EU exports will take time to become apparent. China has said the investigation could last more than a year.<\/p>\n
Brazil, Argentina and the United States may export more pork and offal to China if exports from the European Union are restricted,” said Pan Chenjun, an analyst at Rabobank in Hong Kong.<\/p>\n
“If the anti-dumping rate is too high, then shipments from other origins such as the United States, Brazil and Argentina will increase.”<\/p>\n
Anti-dumping duties could severely affect Europe, as Chinese purchases of pork from Europe include parts such as feet, ears and offal that are typically only intended for pet food and not for human consumption in Europe.<\/p>\n
Pan, however, said any impact on the Chinese market would be limited.<\/p>\n
If imports from the European Union are restricted, we will not see major repercussions on the local market in terms of supply and prices. This is because Chinese imports of pork and offal only account for 5% of total consumption,” Pan explained.<\/p>\n
Major consumer and products
\nIn 2023, China imported pork, including China’s exports offal, worth $6 billion, according to customs data. It is the world’s largest pork producer and consumes about half the world’s pork.<\/p>\n
Domestic pork prices had plummeted, but the oversupply has eased this year as farmers slaughtered fewer pigs to boost the market.<\/p>\n
An Asia-based feed trader said Brazil, China’s top agricultural trading partner, would benefit from any disruption to EU trade.<\/p>\n
The trader, who asked not to be named because he was not authorised to speak to the press, said Brazil was very competitive in terms of prices and could easily increase its market share.<\/p>\n
Russia also has growth potential and, according to Yuri Kovalev, head of the country’s National Union of Pork Producers, wants to achieve a 10% share of Chinese pork imports within three to four years.<\/p>\n
As of June 2, Russian pork shipments to China amounted to 4,260 metric tons, but Sergey Dankvert, head of Rosselkhoznadzor, Russia\u2019s agricultural watchdog, said earlier this month that Russia could export up to 100,000 tons of pork to China in 2024.<\/p>\n
The head of Miratorg, one of Russia\u2019s main pork suppliers, Viktor Linnik, told an investment forum in St. Petersburg that the agricultural holding was prepared to supply China with about 40,000 tons of pork by the end of the year. A Shanghai meat trader, who asked not to be quoted, said his company was in contact with Russian pork exporters.<\/p>\n