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On the other hand, Frans Van Dongen, from the Dutch Meat Industry, talked about tariff and non-tariff barriers that pose obstacles to the global pork trade.
In this sense, the specialist said that pork trade will grow by 1.8% in the next years, mainly due to the production increase in Russia (3.8%), China (3.3%), and Brazil (3%).
Also, the world’s consumption will increase by a total 1.6%, led by China, where consumption will go up by 10% for 2012.
Van Dongen explained that global prices are not only increasing but also becoming standardized. “Global growth is constant,” he said. “The European Union recovered from the drop experienced in 2008-2009, although we should say that some European countries are
importing pork.”
Another country with an outstanding production and consumption growth is Brazil, which is not only producing for its domestic market but also for export purposes.
As regards Europe, Germany leads the growth: since the year 2000, its production grew by 22%, and the main destination of its exports is China. Other countries that experienced a significant growth were Denmark and Spain.
On the other hand, in South America, Van Dongen highlighted the production in Chile.
However, the specialist stated that “we still have headaches in this sector caused by tariff barriers –such as the taxes levied on imports by several countries all over the world–, as well as non-tariff barriers."
In this sense, Van Dongen blamed phytosanitary policies, the lack of articulation among the different countries’ legislations, and label-oforigin requirements, among other factors.
“While the problem regarding tariff barriers will be dealt with at the World Trade Organization’s Doha Round,” he stated, “non-tariff barriers should be treated as soon as possible. And a good opportunity for this will be the Pork Market Congress to be held next
year in Germany.”
On the other hand, Paul Brand, president of the German Meat Association, explained that pork consumption depends on highincome sectors, whose demand is increasing in several countries all over the world, as well as on demographic growth in developing countries.
Notwithstanding this, he also pointed out that the poverty issue has an influence on animal feeding techniques: “Certain sectors argue that there is no point in using so much money to feed animals when there are people starving,” he stated.
Additionally, he said that the growing globalization implied an increase in market concentration, which generates consumers’ rejection.
He believes that consumption within the OECD will remain stable, while consumption in countries outside the organization will experience a growth in the upcoming years.
In his opinion, this growing demand, together with higher prices in the energy sector, will push pork prices up. “There will be an average 17% increase both regarding production and consumption until 2019,” he said.
Subsequently, Brand referred to business sustainability and stated that “it has to do with much more than gas emissions or the energy issue: it also has to do with animal care, the origin and traceability of products, and the care of vulnerable regions and populations.”
He criticized recent studies carried out by the FAO, which asserted that 18% of greenhouse gas emissions were caused by agriculture; this information was subsequently proved untrue. “We should be careful when dealing with this type of information,” he warned.
Finally, Brand said that the pork sector has better perspectives than other sectors, and that it is getting closer to the poultry industry.
“The sector’s sustainability may be improved in many ways, such as with the introduction of new improvements in animal care (mainly in relation to slaughtering methods, so as to reduce animal suffering), and the review of transportation legislation systems (which today
generate debates among the European union’s countries),” he explained.
According to Brand, the label of origin is often used to benefit certain regions that are protected by pressure groups.
“We need to come up with intelligent solutions for a growing market, both in terms of demand and production. And solutions might come from the research and communication fields,” he concluded.
On the other hand, Erin Daley, economist from the US Meat Export Federation, moderated a debate where three specialists participated. Daley said that consumers are pressed by different NGOs. “We need to find a way to be still competitive, even in view of this type of pressure against consumers. See the paradox: there is a developing world, with higher demand levels but with more trade restrictions,” he pointed out.
According to Daley, developing countries will also resort to foreign trade.
The specialists stated that “we need to look for new markets. We do not have to get into a tariff spiral that would eventually generate losses for us all. Therefore, we should work together so as not to lose the opportunity.”
In this sense, Daley pointed out that we often focus more on the domestic level than on the global level, explaining, for example, what is happening with trade within the European Union, where the sector is being undermined by the label-of-origin system.
“Countries need to understand that tariff barriers go against themselves as well as other countries. We should join efforts in order to standardize tariff legislations at the global level,” agreed all specialists.
They also pointed out that, besides tariff restrictions and NGOs campaigns, consumers are the final decision-takers as to the type of pork they want to eat. All specialists agreed on the fact that the sector’s future challenge will be to feed more people in an environmentally-friendly way.
http://www.worldmeatcongress2010.com/files/PRESS_RELEASE_-_PORK_COMMISSION_MEETING.pdf
