Agriculture, Livestock, Meat
February 10, 2025
North Asia pork price rises 5.6% since early Jan amid FMD disease outbreak, import bans
By Alia Yazid
HIGHLIGHTS
FMD crisis pushes pork prices higher in North Asia
Pork sheet ribbed belly price from Mexico rises 7.5% from Jan 21
Tariff reductions expected to boost Canadian pork imports in South Korea
In North Asia, pork prices have been experiencing upward pressure following recent foot-and-mouth disease (FMD), according to sources.
South Korea has imposed a ban on German pork and pork products effective Jan. 10, following Germany's first reported case of FMD at a small farm in Brandenburg, according to the Ministry of Agriculture, Food and Rural Affairs.
Since the announcement of FMD outbreak, sources from South Korea and Japan have reported higher offer prices from meat packers. Market participants from Korea have indicated offers of up to $6,000/mt for single-ribbed pork belly from Europe.
The Platts assessment for Pork Belly CFR North Asia was recorded at $5,250/mt on Feb. 7, reflecting a 5.6% increase from $4,970 on Jan. 2, according to S&P Global Commodity Insights data.
A market participant has reported that buyers are not expecting the same level of severity as seen previously with African Swine Fever (ASF). As of now, no trades have been occurring at the offer level.
"Importers are being cautious and observing the market carefully, resulting in lower bids and high offers. Therefore, trades are not happening at that level yet," a South Korean market source said.
Several market sources in Japan have reported that Mexican exporters have increased their prices of sheet ribbed belly by 7.5% from Jan. 21 to Yen 860/kg. One source indicated they have ceased purchasing from Mexico due to these high prices.
Additionally, sources noted the price hike is primarily attributed to the outbreak of FMD, rather than the potential tariff implications between the US and Mexico.
The Korea Customs Service has announced a planned reduction in the import tariff on Canadian chilled pork belly, decreasing from 5.1% to 3.4% in 2025.
This reduction is expected to boost Canadian pork imports, which already dominated South Korea's chilled meat market, accounting for 70% of total imports in 2024. The tariff will be phased out entirely by 2027 under the Free Trade Agreement, further stimulating trade.