Livestock farmers and Agriculture conspire to recover one of their main markets after the return of swine fever

“We will fight certificate by certificate, country by country,” the Minister of Agriculture promised before the Senate this Tuesday Luis Planas, where, in response to questions from the opposition, he announced that United Kingdom would apply the same limitations to Spanish pigs as the rest of the European Union (EU). That is, minus the 20 kilometer zone around the focus of African swine fever (ASF), the rest of the country will be able to export to the British market.

In this way, Spanish pork has managed to reopen several important markets, although among non-EU countries the road is going to be steeper. All of the above, despite the fact that China’s most positive attitude limiting its veto to the province of Barcelona can play an essential role in the decision made by other buyers, such as South Korea and the Philippines.

A complex negotiation

The main destination for Spanish pigs outside the EU is Chinawith 1,059.32 million euros, which is applying the export protocol signed mid-last month. However, Japan (751.67 million euros), which is the second largest non-EU client after the Asian giant, is closed firmly. Next on the list is South Koreawhich last year bought pork products from us for 304.5 million, is now focusing a large part of the efforts of the sector and the Ministry of Agriculture, as confirmed to Economic Information knowledgeable sources. A slight optimism begins to make its way.

“If China opens its market, others will do so: Asia, excluding Japan, tends to follow what this country dictates,” Francesc Rufas (EAE Business School)

The EAE Business School professor, Francesc Rufas, tells this newspaper that “The United States and Japan are ultra-protectionist” and that they usually impose “internal regulations with very aggressive production, labeling and health standards.” A type of non-tariff barriers that, in the opinion of this expert, have a lower response than a tariff “which usually has a compensation.” Conditions that ironically are not usually met by many local producers, according to Rufas.

Regarding South Korea, he is sure that “If China opens its market, the others will do the same: Asia, excluding Japan, tends to follow what this country sets,” says this analyst who knows the sector and, remember, that “60% of our exports are destined for these countries. This is 30% of what we produce.” Furthermore, he concludes, that “China didn’t have much choice “Since it is not easy to change supply sources, it involves months of planning and large volume purchases.”

Since November 29, South Korea has suspended imports of pork and pork products, as well as tripe and skins from Spain. To which all forages are attached

“The files are going to be reopened”

The latest update from the department headed by Luis Planas indicates that South Korea has maintained, since November 29,imports of pork and derived products suspendedas well as guts and skins. In addition, it also vetoes all forage from Spain. From the National Association of Pig Cattle Producers (ANPROGAPOR), its general director Miguel Ángel Higuera is moderately optimistic about South Korea. “We believe that the files will be reopened and that there will be no problem, in which it accepts European health requirements,” says Higueras in statements to this newspaper, who also defends that the alert was communicated to the world “barely 12 hours after the detection of the first outbreak” and hopes that this transparency will be taken into account by international markets.

Rufas (EAE Business School) believes that the next few days will be decisive. “Yes until next Friday or Saturday, Everything that is detected is within the perimeter, the disease will have been overcome and caught in time.” All this, despite the fact that in his opinion “it can happen again because half of Europe is contaminated.” With Spain they are already 14 European countries have the presence of the plague African swine flu (ASF), “since in seven days all the animals infected by the virus will have died and the sources of contamination will have been eliminated.” Although the pathogen will remain latent.

For Miguel Ángel Higuera, general director of the National Association of Pork Producers (ANPROGAPOR), a large part of the future of the sector is at stake “in the ability to relocate to other, cheaper destinations, what is no longer sold in Japan, more than 700 million euros.”

“Relocating” exports, the key to the coming days

Quite the opposite about Japan. Higueras acknowledges that he is not optimistic and regrets the closure of the Japanese market, since the sector sells value-added products in that country. “It’s a shame we lost himalthough the minister has given us his word that each destination will be fought for,” laments. The general director of ANPROGAPOR, who mentions other relevant places for Spanish pork such as Malaysia either Vietnamargues that a large part of the future is at stake “in the ability to relocate to other, cheaper destinations, what is no longer sold in Japan, more than 700 million euros.”

Higuera assumes that there will be a loss and He is confident that Spanish pork can sell in other countries. Furthermore, the representative of the producers notes the possibility of a drop in prices in reference to the decrease in prices in Mercolleida, the reference market for the sector, and asks the rest of the value chain (industry, merchants, large-scale distribution) to pass on these price reductions “to encourage national consumption.”