Chile and Vietnam are expected to open markets for UK pig meat
A boost for the UK pork industry is expected to appear this year, as AHDB, the government and industry representatives are working to enter new markets around the globe or to expand others. Vietnam, Chile and Mexico are on focus for the UK pork exporters as the country search to secure new trade relations with major pork importers in the international market. Vietnam and Chile are the main markets where the UK in concentrating right now to secure pork access.
In Vietnam, pork is the most favoured meat, with consumption outstripping domestic production. Outbreaks of African swine fever in the country also led to an increase in pork imports last year, offering potential opportunities for pork exporters in the UK.
Pork production in Chile remained stagnant last year, with imports rising year after year for the last decade due to increased demand. We estimate access to Chile could be worth around £20 million to the UK’s pork sector in the first five years of trade.
The UK has an association agreement with Chile, which largely maintains prior preferential trading arrangements and rules of origin. This means that once an agreement is secured, UK pork exporters can benefit from the import tariff under the Most Favoured Nation tariff of 6%, subject to certain conditions.
AHDB International Market Development Director Dr Phil Hadley said both markets offered potential for the UK’s pork sector. "Opening the market for UK pork to Chile and Vietnam will provide our pig farmers and processors with other valuable markets to sell their products, providing a much-needed boost for the sector. A great deal of work is going on behind the scenes to make this a reality and we hope for further announcements on both markets this year. One of AHDB’s key roles is providing valuable expertise and insight to UK government and the wider industry to secure additional markets for our exporters."
Work is also ongoing to expand the UK’s offering to Mexico to include offal, having gained market access for meat in September last year – in a move estimated to be worth £50 million to the UK’s pork sector over the first five years of trade. Opening new markets will help to balance trade volatility while widening outlets for specific products, enabling processors to maximise the value of every product.
While some exports markets have dropped recently, others have enjoyed a strong year with the Philippines seeing shipments of pork from the UK rise from just under 7,000 tonnes in January to November of 2020, to almost 23,400 tonnes during the same period last year – worth £35 million. South Korea has also increased its imports of UK pork, with volumes up a staggering 261% in the first eleven months of 2021 – worth just over £7 million. "While overall export volumes are down on 2020 due to a number of factors, including domestic demand and the increased cost and complexity of exporting to the EU, there are markets that have seen significant growth. AHDB recognises the value that overseas trade brings to our levy payers. We will continue to look for new opportunities, work closely with government and attend key trade shows around the world to fly the flag for UK pork and help our levy payers benefit from the huge benefits these new and existing markets present," Dr Hadley added.
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