First case of African swine fever in Spain could affect global trade

After the first case of African swine fever (ASF) was detected in Spain last month, the U.S. Meat Export Federation (USMEF) explained that trade relations are changing.

Spain is the largest pork producer in the European Union and the second-largest pork exporter globally, behind only the United States.

“Spanish production accounted for approximately 27% of total EU production this year,” said Erin Borror, vice president of economic analysis. “This represents approximately 3.88 million metric tons produced between January and September, and this production volume is actually at a record high, increasing by 6.6%.”

Some countries, such as China and South Korea, have a regional agreement with Spain regarding African swine fever (ASF). Therefore, China has suspended imports only from plants located in the Barcelona province where confirmed cases of ASF have been detected. Likewise, South Korea will continue to accept imports from regions of Spain not affected by ASF. The United Kingdom and all EU member states will also accept imports from ASF-free regions of Spain.

However, other trading partners have suspended all pork imports from Spain, including Japan and the Philippines, the second- and third-largest export markets outside the EU, respectively.

Malaysia, the sixth-largest market, where Spain accounts for 35%, has also suspended all imports, along with Mexico, Taiwan, and Thailand.

“Intra-European trade continues, and it has clearly become regionalized, and this trade has been largely unaffected,” Borror said. “Therefore, trade with third countries is important. And in this regard, I think Spain is a real success story, and this is something the American industry should aspire to, because they regionalized very quickly… literally in a matter of days.”

Only about a third of Spain’s exports to third-country markets have been completely suspended. This means that most of the country’s trading partners have accepted EU regionalization, at least to a large extent in terms of volumes.

Borror noted that these closed markets could provide additional opportunities for American pork exports.

“Opportunities for American pork in Japan should emerge, primarily for frozen tenderloin,” Borror said. “Regarding Malaysia, I’m optimistic. Given the potential for various cuts and the limited global capacity to supply this market, we should expect increased business for the US.”

African swine fever (ASF) was first detected in two dead wild boars in the Barcelona region of Catalonia. Subsequently, 11 more dead wild boars in the same area were confirmed to have ASF.

Catalonia accounts for approximately 8% of Spain’s pork production.

Tags: pork, Spain, ASF