China lacks millions of pigs to its griseglade population. Therefore, lowers the country is now import duty.
China has chosen to lower the duty on imported, frozen pork by one third. It brings joy to the Danish Crown, that the last year has seen a major increase in exports to the populous and svinekødsglade country.
China is not just incredibly happy pork. The country is also hard hit by african swine fever, and therefore difficult to produce pork themselves.
- It comes at least not to harm us, it does not. The price level is already good, and we hope that this will strengthen the consumption. The lower prices will be passed on to consumers.
- It can also help to provide a more stable market in the entire Asia, if the others are looking a little more towards China, says global sales director for Danish Crown Lars Albertsen.
Danish Crown has earlier this year signed a major sales agreement with chinese Cofco and has opened a factory in China to meet the growing demand.
- We packages on the life loose to China and have a good demand, " says Lars Albertsen.
China has over the last years become a key market for Danish Crown, not least after it has sold its activities in the Uk.
We have seen China develop highly attractive and has been a market we have not figured 10-15 years ago. Today it's probably in the top 3 of the most important markets for us.
- You do not have the kødforskrækkelse out there with veganism and flexitarisme and all that. It has been a completely wild development for us, says Lars Albertsen.
- There is a shortage of around 200 million pigs in China a year due to svinepesten. So there is a huge need and a great interest for our products, " says the director.
The demand has been instrumental in the Danish pig farmers can now get the 13.3 kroner per kilo of pig they sell to the Danish Crown, against a little over eight dollars for a year ago, according to the director.
At the Agriculture & Food call director Flemming Nørgård-Pedersen it is also positive that the duty has been put down.
It can be to secure an even stronger foothold for Danish companies in China.
- As a starting point it is always positive, that the chinese have reduced their tariffs on frozen pork, because the Danish fødevareklynge have got quite a good hold in China, he says.
In the first nine months, exports of food products to China increased by 106 percent in dollars, compared with last year. A big part is the pork.
Agriculture & Food expects that the total food exports to China end up on the ten billion dollars in the year.
- China is really taken giant steps forward and end up probably being our third or fourth largest export market, says Flemming Nørgård-Pedersen.
/ritzau/Updated Date: 23 December 2019, 17:00