How is Spain’s ASF Outbreak Impacting Global Pork Trade?

Closed markets may provide some incremental export opportunities for U.S. pork, says USMEF’s Erin Borror. Some trading partners suspending all pork imports from Spain include Japan, the Philippines, Malaysia, Mexico, Taiwan and Thailand.

Spain
(Peter Hermes Furian)

Since African swine fever (ASF) was recently confirmed in Spain in a wild boar for the first time since 1994, the virus has now been confirmed in at least 11 more wild boars, found dead in the same area near Barcelona.

Spain is the European Union’s largest pork producer and the No. 2 global pork exporter, trailing only the U.S. The area where the boars were found, the Catalonia region, accounts for about 8% of Spain’s hog production.

Due to China’s recent ASF regionalization agreement with Spain, China only suspended imports from establishments in Barcelona province, explains U.S. Meat Export Federation (USMEF) Vice President for Economic Analysis Erin Borror.

South Korea also recognizes ASF regionalization for 14 EU member states, including Spain, so Korea will continue to accept imports from regions of Spain not affected by the virus, she adds.

Meanwhile, the United Kingdom and all EU member states will also accept imports from ASF-free regions of Spain.

Trading partners suspending all pork imports from Spain include Japan and the Philippines, which are Spain’s second- and third-largest non-EU export markets, respectively. Malaysia, which is sixth-largest and where Spain holds 35% market share, also suspended all imports, along with Mexico, Taiwan and Thailand. Borror points out those closed markets may provide some incremental export opportunities for U.S. pork.

“I think Spain is really a success story and something that the U.S. industry should aspire to, because they were very quickly regionalized,” Borror says. “Only about a third of Spain’s exports to third-country markets are fully suspended, so that means the majority of their trading partners have accepted EU regionalization, at least the majority based on volumes.”

As she considers the big impacts from this situation, Borror says there should be some opportunities for U.S. pork in Japan, thinking mostly frozen loins.

“For Malaysia, I am optimistic,” she adds. “With the potential for a mix of cuts, and just given the limited facilities eligible globally to supply that market, there should be some incremental business for the U.S.”

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