Greater opportunities for pigmeat exporters in Eastern Europe

A COMBINATION of severe falls in domestic production and increasing consumer purchasing power is leading to greater opportunities for Irish pigmeat exporters in Eastern Europe.

David Owens, Meat Division, Bord Bia, said the pig industry in Eastern Europe has been much harder hit by the pig price crisis of 2007 and the present economic difficulties.

Production across the new member states has fallen by as much as 600,000 tonnes, or 15% since 2007. While these countries represent 46% of the total EU population they only account for 17% of EU pig production.

Given the fragmented nature and relatively poor infrastructure within the industry in these countries, production is very reactive to price and changes in consumption patterns which can fluctuate widely.

The industry in the region has been faced with considerable challenges including the structures in place from previous regimes.

Individual country’s self-sufficiency levels vary, with deficits in supply evident in most countries.

“With production in Eastern Europe falling to below 1990 levels, the requirement for imports has increased strongly, a demand which has been largely fulfilled by EU15 suppliers. Increased demand from the manufacturing industries has created opportunities for cheaper cuts.

“These manufacturers are increasingly turning to imported product due to its higher specification and its increasing availability. The largest market, Poland, has increased import volumes tenfold since 2003,” Mr Owens said.

“The majority of this has been supplied by Germany given its proximity to the market and historical links, accounting for a third of all supplies,” he said.

Mr Owens, writing in Bod Bia’s market monitor, said that despite the economic problems imports have continued to increase this year with volumes for the first six months up by 14% to 580,000 tonnes.

Irish exports to the region amounted to almost 5,000 tonnes in 2008.