Canadian pork exports have new opportunities to push further into some of the world’s most lucrative markets.
Disease in South Korea has forced that country to slash its import tariffs on pork while dioxin contamination has crippled German pork exports.
“The markets are in turmoil,” said Jacques Pomerleau of Canada Pork International.
South Korea is Canada’s fourth largest export market, but that could change as it cuts its almost 30 percent tariff.
“They are likely to buy a lot more,” said Pomerleau.
South Korea has lost 15 percent of its domestic herd because of steps to eradicate foot-and-mouth disease, and wholesale prices of pork have risen 70 percent. Korean cattle herds have also been infected.
Meanwhile, Germany’s pork exports have collapsed after dioxin was found in pig and poultry feed in early January. That temporarily locks German exports out of many markets, and will likely reduce demand for European Union frozen pork in Asia.
“It raises questions about the quality and safety of European meat,” said Ron Plain of the University of Missouri.
“That’s likely to be good news for U.S. and North American hog producers.”
European hog producers are already in trouble because of escalating feed grain prices and high costs of production. Some believe that many European hog producers will not be able to survive this crisis.
France has asked the EU to provide hog industry aid.
Japan and South Korea are markets for frozen EU pork. Canada and the United States are already able to sell into the higher-value chilled pork market.
