China's decision to launch an anti-dumping procedure against pork from Europe was one of the most important events in the second half of June. The Union of Producers and Employers of the Meat Industry noted in its commentary that this situation will affect the situation of Polish pig breeders and processors. It won't be long before they start to feel the changing market situation and the consequences of China's decisions.
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Fight for markets that will allow you to at least partially compensate for your losses
Reuters reports that both the Spanish Ministry of Economy, representatives of the pig industry and exporters themselves will have to strengthen their presence on such markets that will be able to at least partially compensate for the losses. This mainly concerns South Korea, Japan and the Philippines.
– Such information poses a direct threat to the Polish pig industry. As we predicted, leading European producers will start to compete more fiercely with each other not only on the European market, but also on foreign markets. We cannot deceive ourselves that anyone will have common European interests in mind, but rather we should expect that the "closer to the shirt to the body" principle will come into force. Of course, we have been competing with countries such as Spain so far, but now we can expect even more fierce competition – says Wiesław Różański, president of the management board of UPEMI.
– Meat that does not go to China must find its place in other markets. Japan, Korea and the Philippines are countries where, despite a good start, we are just starting to exist and we may not be sufficiently prepared to enter into a fierce competitive fight with other European producers who will be determined to make up for the losses resulting from the lack of access to the Chinese market – explains Różański.
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We can expect further negative news for the meat industry
Różański believes that in the near future we can expect further negative information for the meat industry, which may be the result of geopolitical phenomena taking place in the world.
– We cannot forget that Putin's recent visit to Vietnam was not only about showing the world which side of the barricade Vietnam is on, but it certainly had an economic dimension. Although Russia is largely excluded from the world market, it is a large producer of pigs, so the Vietnamese market will certainly be important for Russian exporters. Vietnam has been attracting the attention of Polish exporters for some time, but Asian countries with an unstable political situation, especially undemocratic ones, may introduce and lift restrictions from one day to the next, thus exposing all efforts to increase the presence of Polish meat to failure, said Różański.
UPEMI experts also believe that China's decision will result in Spanish pork exports worth nearly EUR 700 million in 2023 increasing their share in more stable Southeast Asian countries. Mainly the so-called "fifth quarter" of pork carcass, which was not sold in Europe, went to China. According to UPEMI, this product may reach Africa, probably at lower prices. The sum of these phenomena will have a very negative impact on the entire industry in Europe.
It is also important that Spain is one of the most striking examples, but we must not forget about the Netherlands and Denmark, whose exports to China exceed EUR 2 billion per year. Next in line are France and Belgium. All these countries must intensively look for new markets.
Application to accelerate promotion on Asian markets
Due to the possible beginning of serious turmoil on the European and global pig market, UPEMI requested the Minister of Agriculture and Rural Development to accelerate
and expanding activities aimed at promoting the Polish meat industry on Asian markets, similarly to other EU countries that suffered as a result of the decision made by the Chinese authorities.
A good example was the June visit of representatives of the Polish meat industry to South Korea, during which Polish producers could not only establish trade relations with Korean entrepreneurs, but also participate in talks with veterinary authorities and representatives of the Korean Ministry of Agriculture.
According to UPEMI, the presence of representatives of the Ministry of Agriculture and Polish veterinary services was very important, as it strengthens the position of Polish exporters and, in some cases, allows for faster overcoming of administrative barriers limiting access to the South Korean market.
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