South Korea records 2024's second-lowest pork imports in Oct as the Philippines demand surges

South Korea recorded 2024's second-lowest monthly frozen meat imports for October as demand increased in the US and the Philippines, according to the Korean Meat Trade Association and S&P Global Commodity Insights data.

The Platts assessment for Pork Belly CFR North Asia was at $4,844/mt at the end of Nov. 29, up 4.9% from $4,620/mt Nov. 1, Commodity Insights data showed.

Strong demand from the Philippines and the US, an outbreak of African swine fever and low inventory levels are driving the higher prices. According to the USDA, the Philippines' frozen pork inventory has declined nearly 40% over a nine-month period due to the ASF outbreak.

The Brazilian Animal Protein Association, ABPA, said the Philippines imported 33,349 mt of pork from Brazil in October, compared to South Korea's total import of only 25,419 mt for the same month. This showed a big shift in trade dynamics driven by increasing demand from the Philippines.

The Philippines has emerged as Brazil's largest pork export market, with 186,880 mt shipped between January and October, surpassing China. This surge is expected to persist until the issues related to ASF are resolved or contained, according to a source from the Philippines.

South Korea's monthly pork meat imports in October reached 25,419 mt, the Korean Meat Trade Association said. Traditionally, October is a slower month for pork imports as demand tends to peak in the US due to the grilling season and seasonal holidays in November and December. Despite facing its 10th outbreak of ASF with lower pig production in September and a weakened won -- which usually benefits importers by reducing prices -- the import volumes remained low.

At the beginning of the year, South Korea faced significant inventory challenges as demand for pork belly consumption from both locals and tourists was lower than expected, according to market sources. Although there has been a recovery in the number of foreign tourists visiting South Korea, their average spending has decreased by 37.7%, dropping to $1,002 per tourist in the first half of 2024, according to Yanolja Research.