EU concerned about pork market

The European Meat Industry Association (Clitravi), is concerned about the recent sharp rise in the price of pork in Europe. Pork is the main raw material for the European meat products industry. All member organisations, including the VNV (Association of Dutch Packaging Experts), warned during the annual meeting in Salzburg of the possible consequences for the entire industry. The European processed meats industry is making an urgent appeal to chain partners to share these extra costs fairly.

Increase in market demand in China

As a result of the sharp rise in Chinese pork demand due to the sharp drop in local production, the global price of pork is currently 30% above the level of early January 2019. In China, about half of the world's pork production takes place. Clitravi expects the market situation to deteriorate further in the foreseeable future. This has a major impact on other sectors in the meat processing industry. The cost of the raw material for the processing industry represents about 50% and in some cases even 75% of the total production costs.

Long-term impact

Clitravi considers it important that the entire production chain understands that this is not a temporary situation, but that it will persist for a long time to come. Clitravi and its members will consult with other chain partners and European and national authorities to raise these concerns and to work together to find possible solutions. Clitravi President Robert Volut said: "There was an enormous consternation during the members' meeting, as this situation is a potential threat to businesses, jobs and livelihoods in European industry".

The VNV is also sounding the alarm about the consequences for the Dutch meat industry. It seems that speculators are already focusing on the further development of demand from China. Apparently, large quantities of pork are purchased throughout Europe and stored in cold stores. The availability of meat as a raw material for the production of meat products is therefore under great pressure.

VNV President Jos Goebbels shares the concern about the long-term effects for the entire meat industry: "I fear that, if the price is too high, consumers will look for (cheaper) products that have been produced less sustainably or will even move on to other less healthy alternatives to meat products. This will have an effect on our entire industry; on the continuity of the often still characteristic SMEs and on the employment of the approximately 4,000 employees in the Netherlands," says Goebbels.