Photo: DAFC

Photo: Colourbox

2022 is the year of the tiger – a brief insight into the Chinese market

In early February, a significant proportion of the global population celebrates the Chinese New Year. China is currently one of the most important markets for Danish food exports and as part of the celebrations, we are taking a brief look at the Chinese market. Although 2022 is the year of the tiger, we remain focused on the pig.

In the Chinese calendar, the tiger is associated with courage, change, openness and generosity. Throughout 2021, the global pig meat market has also experienced changes. China has restored its pig production following the outbreak of African Swine Fever, which significantly affected the Chinese pig population. The restoration means that Chinese pig production in 2021 accounted for 51.5 per cent of global pig production. As a result, the European market has experienced a decline in the EU exports to China, which has been a major buyer of pig meat.

The chart shows the global pig production in 2021. Source: USDA, Boyar, European Commission, DSM Analyses.

Slight growth in Danish exports despite decline in EU exports to China
EU exports to China fell by 19% from January to November 2021 compared to the corresponding period in 2020. Despite a general decline in pig meat exports to China, Danish exports to China grew by 0.4 per cent from January to November 2021 compared to 2020.

Read also: What is the outlook for 2022 for the Danish pig sector with the pandemic still a presence in our lives?

China’s pig production is growing despite challenges in the global market
A number of factors have presented challenges to global pig production. The pandemic’s restrictions on the food service sector were the cause of a decline in demand. At the same time, considerable uncertainty in the market has affected slaughtering, processing and logistics throughout pig production’s supply chain. Poor weather conditions are the reason for high feed prices.

European outbreaks of ASF have also contributed to a fall in the Danish pig price.

We welcome 2022 as the year of the tiger and hope that the tiger’s adventurous spirit and energy will permeate the year ahead.

Read also: Annual Report: an insight into Danish pig meat production in 2020