Japan pork imports to drop by 4%
For the first three months of the year, Japan has reduced its pork imports by 2% as a combined situation of increased domestic production, higher stocks from 2019 and the COVID-19 crisis have reshaped the market. The weakness in the foodservice sector is expected to have a longer impact on the market along with suppressed tourism, announced Gira in a recent analysis. By the end of 2020, pork imports may go down 4% year-on-year, according to the analysts.
For the first three months of 2020, Japan’s imports of fresh and frozen pork totaled 207,100 tonnes, down 2% (5,100 tonnes) compared to the same period last year.
Volumes from key suppliers including the US, Canada, Mexico and to a lesser extent Spain, were all higher year-on-year. A notable rise in imports also came from Brazil. However, lower imports from many European countries, especially from Denmark, outweighed this. "Relatively high Japanese pork stocks from 2019 and higher pig slaughter during the first quarter of the year may have influenced import volumes. Japan is currently in the peak phase of COVID-19 (along with Europe, the US and Canada), and, like others, is facing supply chain disruption as foodservice demand remains heavily weakened. Consumers are cooking more at home, and are avoiding premium proteins and cuts in favour of cheaper alternatives. This has benefitted pork, being a staple in Japanese cooking", considers Hannah Clarke, AHDB analyst.
Still, Denmark may soon recover the lost ground in the Japanese market as Danish Crown announced that a huge order has been received by the company at the beginning of this month. "The orders from Japan are on products that require relatively much processing, so we are really happy to have to hire at a time when there are unfortunately many other industries that are having difficulty", commented Soren F. Eriksen, CEO of Danish Crown Pork.
Last year, Danish Crown's exports to Japan totaled more than DKK 3 billion (€400 million) but much of those products consisted of fresh pork. "Because of the customs system, the Japanese buy almost exclusively fresh meat, which they themselves process and package. Several of our customers are interested in changing, so we have to handle a larger part of the processing. These kinds of agreements take time to get in place - but if we succeed, we will need even more hands in the years to come", added Mr. Eriksen.
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