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EuroTier 2018: Opportunities and risks on the pork markets in Russia and China

28 November 2018 - At this year's EuroTier in Hanover, Germany, IAMO and the German Agribusiness Alliance at the German Eastern Business Association hosted an expert forum entitled “Trends in global pork markets in light of the Russian import ban” on 16 November 2018.

Experts from science and business talked about the opportunities and challenges of exporting pork to Russia and China. The event was opened and moderated by Dr. Per Brodersen, German Agribusiness Alliance at the German Eastern Business Association.

IAMO scientist Maximilian Heigermoser gave an overview of the current situation on the Russian pork market. Against the background of the Ukrainian crisis and the import sanctions imposed in August 2014, the export of German pork to Russia came to a complete standstill. Due to regional shifts and a clear structural change towards the dominance of agroholdings, the production of pork in Russia increased strongly and the country is now considered to be virtually self-sufficient. In addition, it can be assumed that Russia will act as a strong competitor to German pork exporters on the world markets in the future. Download presentation

Dr. Olga Kylina (LL.M.), Temperi legal services, discussed in her presentation the best strategies for the German food industry in dealing with Russian food sanctions. If the country of origin as well as the product group of the respective foodstuff are under embargo, the sanctions can nevertheless be circumvented by certain measures. A further processing of products in a "sanction-free" country or the modification of certain product characteristics can make an export to Russia possible. But also the integration of Russia itself in the context of raw material production or production opens up good opportunities for German companies to sell their products in Russia. Download presentation

In comparison, Wolfgang Etzl of Big Dutchman International, the world market leader for housing equipment for poultry and pigs, reported on the opportunities and risks involved in exporting pork to China. China is not only the largest producer, but also the largest consumer and importer of pork. The Chinese market has a major impact on the price of pork in many countries around the world. Furthermore, trade barriers and swine fever in China lead to uncertainties and distortions in the market.