China’s German Pork Ban to Cement U.S. as Top Overseas Supplier

(Bloomberg) -- China’s ban on German pork is set to cement the U.S. as the top overseas supplier of the nation’s staple meat.

An outbreak of African swine fever in Germany -- the same virus that’s slashed China’s hog herds and lifted its import requirements -- has led Beijing to halt pork purchases and destroy existing supplies from Europe’s biggest producer. That could cut imports by about 300,000 tons this year, said Wang Zuli, an adviser to China’s agriculture ministry.

“The reduction of supplies from Germany will likely be replaced mainly with those from the U.S. and Spain, which would make the two countries the top suppliers this year,” said Wang, a researcher at the Chinese Academy of Agricultural Sciences.

In just the first seven months of 2020, China imported 2.56 million tons of pork, well above all of last year’s 2 million tons, as its seeks to meet the shortfall caused by the disease. The U.S. is the top origin with almost a fifth of the total, helped by Beijing’s need to boost purchases of American farm goods to meet its phase-one trade deal pledges.

China’s own hog herd is recovering, which may help cool domestic prices, said Wang. The government has also released over 500,000 tons of state reserves so far this year in an effort to tamp down food inflation, he said.

Haisen Trade, a small meat importer based in Hebei province, will look to other European producers to replace lost German pork as well as the U.S. because American supplies are becoming less competitive, according to a trader at the company who gave her family name as Guo. The company imports about 20 to 30 containers of meat globally a month, she said.

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With assistance from Bloomberg