Danish pork exports with considerable losses (7-month comparison)
Danish pork exports, which have been on a growth trajectory for years, have recently suffered several major setbacks. For the 2nd year in a row, exports in the first 7 months have fallen by around 20%.
The decisive cuts have occurred in exports to Germany. Pork exports to Germany, which used to total around 360,000 tons, have fallen below the 300,000 ton mark. Nevertheless, Germany still accounts for 30% of Danish exports.
In keeping with tradition, Denmark supplies around 50,000 tons of bacon to the UK. As a result of the sharp decline in UK domestic production over the last decade, imports of other pork cuts have found their way from Denmark to the UK to the tune of a further 70,000 tons. In the last 3 years, however, the volume has not quite been maintained.
Poland's pork imports from Denmark have increased to just over 100,000 tons since Poland joined the EU. Denmark's decades-long growing clout in international pork exports has quickly asserted itself against competition from Germany and other exporting countries. But here, too, limits have been reached.
The long route to Italy with valuable cuts such as ham has also just about managed to hold its own in recent years.
Danish by-products/waste products in quantities of 100,000 tons, which are still considered a delicacy in Asian countries, find their way even further to China and Hong Kong. Low purchase prices and the avoidance of disposal costs make the export profitable.
Japanese imports are at a high and highest quality and price level. However, Denmark's previous export volumes have fallen from over 80,000 tons to around 50,000 tons.
Russian pork imports from Denmark have also decreased. However, the first 7 months of 2013 show a slight upward trend. Whether this will last is questionable.
Danish meat specialties can also be sold in the world's largest export region, the USA. However, 2013 has seen significant cutbacks, as the USA is also having considerable difficulties finding other markets for its pork exports to Russia, which have been banned due to "Ractopamine".
The Danish pork industry is facing a new challenge to concentrate production, processing and marketing and to reposition itself. The days of constant growth are over.
