UK pork industry looks to new markets
12 August 1997
UK pork industry looks to new markets
By Boyd Champness
DUTCH government plans to reduce the countrys pig production by 25% looks set to go ahead – and could open up additional markets for UK producers, according to the Meat and Livestock Commission (MLC).
The swine-fever epidemic which is spreading its way across Holland has already cost the Dutch government Nfl1 billion ($472m) and resulted in the death of 5 million pigs. Only last week, the Dutch government announced that two more regions now had the disease.
MLC pig meat strategy manager Colin Baldwin said the Dutch ministry for agriculture – which announced the 25% cut in production on July 2 – has been wanting to introduce these measures for some time, but lacked public support until now.
“The people Ive spoken to in Holland believe the changes are likely to go through,” Mr Baldwin said.
“Images on Dutch television of piglets getting lethal injections have not gone down well. And the cost to taxpayers has been a huge drain on the Dutch purse,” he said.
MLC market analyst Jane Connor said the swine-fever outbreak and the proposed cuts in production will leave significant gaps in EU markets.
Ms Connor said the Dutch have said that they will try to wind back their live exports – of which the majority go to Spain and Germany – but maintain their processed pork production.
“They will be keen to make sure that their abattoirs dont lose out under the new scheme,” she said.
Ms Connor said the swine-fever epidemic in Holland and the foot-and-mouth disease outbreak in Taiwan would normally have provided significant opportunities for UK producers. However, the strength of the pound has meant that UK producers are finding it difficult to compete.
Pork prices soared to 134.5p/kg in the early part of June when the extent of the Dutch problem was realised, but have since dropped to 117.8p/kg. Ms Connor said UK prices had fallen more sharply than prices throughout the rest of the EU, mainly because the strength of the Sterling had encouraged more imports into the country.