German Producers of Pork Depend on Exports to China19. November 2020
When the Coronavirus initially hit German slaughterhouse workers, many pork producers had to stop processing and were also no longer allowed to export to China (e.g. Tönnies). Now the situation seems to have improved somewhat and production and export are increasing again.
It seems that this trend will not change in the near future as renewed problems in China increase the pressure on pig farms there. Due to high prices for piglets, fewer farms are interested in running pig fattening farms. It is often only the smaller farms that still fatten pigs for slaughter. These farms, however, are not as well equipped to protect themselves against swine fever. Smaller farms work together, for example by sharing transport wagons and feed mills, both of which increase the chances for the spread of swine fever considerably. The destruction caused by current floods in China is adding even more pressure on top of the already existing problems.
The EU Commission is expecting a decline in Chinese pork production of 15 to 25 percent by the end of 2020. In order to compensate for this, China will continue to depend on increased imports. It is expected that 2020 will still exceed the record year 2019. As already reported in August, the price per kilo for pork in Europe has recently risen due to the increased demand. Imports to China were also made easier in January 2020 by reducing import duties on pork (and some other products) from 12 percent to 8 percent, with further reductions still possible.
Exporting companies must be approved in order to export pork to China. GACC certification for the meat products is necessary to enter the Chinese market. In the course of the approval detailed documents and in some cases even accreditation of the establishments by Chinese auditors are required. Mistakes can easily occur during the approval process, as, for example, an incorrect application can give a breeding company approval for trade but not for breeding.
It seems likely that demand for pork products will continue to grow. Exporters must comply with Chinese customs rules and apply for the mandatory China GACC certification.
Are you a producer of pork and interested in exporting to China? Contact us at any time for all questions regarding the approval process of GACC certification at +49 69 271 37 69 150 (for Europe) or +1 773 654 2673 (for USA) or by email.
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