Spain Increased Its Exports of Pork to China by 300%

The rising cost of pork in China has lift the Spanish pork exports by 300% in the first half of 2011, reported Spain’s Office of Economy and Commerce (OFCOMES) in Beijing.

Between January and June, Spain exported pork to China worth 24 million euros, four times more than 6 million of the same period in 2010. Among products China imported from Spain in the first half, 14.6 million euros in pork, offal 7.5 million euros, 1.5 million euros in bacon, and ham 300,000 euros.

With these data, Spain became the major exporter of pork to China, said Alberto Alonso, commercial counselor of the OFCOMES in Beijing. “We estimate that this year will reach 60 million euros in exports of pork to China,” said Alonso.

The price of pork jumped 57% in July, an adverse effects of the inflation data last month, which reached a record high of 37 months, 6.5%, according to statistics from National Bureau of Statistics of China.

Spain is now the fifth largest pork exporter to China, after the United States, Denmark, Canada and France, which is very close.

The inflation situation in China has benefited U.S. imports, the second largest producer, which soared in the first half to 308 million euros, compared to 73 million from 2010, benefiting from the resumption of trade following the Chinese veto by influenza A.

Germany, another major producer, was affected by dioxin contamination to which China responded in January with an import ban from the Teutonic country.

Experts cited today that the inflation situation in the Chinese pork market will last until 2012, so that imports will continue to rise.

In this perspective, the U.S. expected to increase its exports to China by sending 192,000 tons of pork and related products worth $ 169 million to the Asian country plus an additional 63,000 tonnes through Hong Kong, the main port of entry to mainland China.

The Ministry of Agriculture was forced to release some of its reserves to stabilize prices this summer.

Also in July the Chinese government introduced a series of fiscal measures to control the price of pork, including an investment of 391 million dollars (279 million) aimed at creating large-scale slaughterhouses, and a compensation program for each head dies due to illness.

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