The unexpected bright future of British pork
Major shifts in global demand, the spreading of African Swine Fever and trends in clean eating habits are key areas to watch for the British pork industry today. Not all is doom and gloom though, and the sector keeps positive and looks forward to grasping exciting and unexpected opportunities in the future.
COLLECTIVfood has spoken with Dan Power at Gills Heritage, a pork producer working with red tractor farms in the south-east and north of England, to learn more about where their challenges are and what opportunities can be grasped to build a more sustainable, regulated and fair pork industry in the future.
Dan, the African Swine Fever is sadly hitting the big headlines on national news. What is really happening?
The disease is called African but it has actually hit China the hardest. It is now spreading to South East Asia and has been found in the EU as well. Producers had to cull their stock which is not fit for consumption, and millions of pig herds have already been wiped out. Asia as a continent is the largest pork consumer in the world, and it is now unable to meet its internal demand for pork.
This has triggered a rise in demand for British and European pork. Prices started to soar from March this year with big leaps of 20–30% per week. This has now plateaued as China has overstocked pork products and is slowing down imports.
We are seeing a direct impact on local markets: producers have realised they can sell to China at a premium rather than selling at a regular price in their domestic markets, therefore preferring foreign markets to domestic consumers.
As prices to consumers increase, prices of pigs have increased as well. Pig farms have pushed up their prices to producers steadily and consistently. The whole supply chain therefore is becoming more expensive and consumers at home will start noticing this soon.
On top of this, we should factor in the summertime and the start of BBQ season, when we can expect a rise in demand. Shortage of products while the global demand rises means we might not be able to produce enough meat for the British consumer, which could be alarming.
That would be a blow as we are so reliant on seeing pork on our menus. But could there be any positive developments coming out of this?
One thing could be adopting better regulations to make sure farms are well monitored. Here in the UK our level of standards is very high since 1999 but think of places like China, where people keep pigs in their back garden and regulations are much looser.
Another thing could be putting measures in place to understanding how wild boar population moves and where it goes. Wild boars are particularly susceptible to pick up African Swine Fever (ASF). We have found the disease carried in Belgian wild boar herds but do not know whether those families have been in contact with animals reared for human consumption. Tracking wild boar population movements will help contain the spread of diseases.
Another positive outcome of this year’s events has been better trade relationships with overseas businesses. We now have better communications with China. Far Eastern and South Asian countries are new markets for byproducts or residual products that would have gone to waste here in the west, such as pig feet, bones for stock, and offal. Some of these products are absorbed in the pet food industry but not all of it, which is why it is beneficial to be able to pass them on to a market that will consume them rather than throw them away.
How will Brexit affect the pork industry?
As we know, the pork trade between the UK and Europe currently does not have any charge or levy for importing nor exporting. At present, we import 50% of the pork meat consumed in the UK from European countries, mostly Denmark, Germany and Spain. It’s a great and dynamic market, and the UK itself exports 20–25% of its products to Europe freely.
If Brexit goes ahead, we can expect percentage taxes added to imported goods. Traditionally UK pork is more expensive than foreign products because of the higher welfare standards, cost of labour and cost of transport. If a new tax comes into play, British pork might become more competitive. Today, restaurants and other foodservice businesses are usually serving German or Spanish bacon. If prices change, people might turn around and prefer British bacon because they will find the same price.
In a no-deal situation, the AHDB have estimated that imports will fall from 50% to 13%. New importing markets might become more important, such as the USA but overall this could be an opportunity for British pork.
What are the biggest trends in the pork industry at the moment?
There are two really interesting trends happening: one is demand for outdoor reared pork meat and the other is a new-found interest for specialty products.
People are asking how and where pigs are sourced from — there is definitely more awareness for animal welfare.
Consumers want something different and new: from peri peri seasoning to lemon and herb flavouring it’s as if the UK has an insatiable curiosity for new, international flavours. Food stalls and fairs have created a trend for small volume but very specialised products.
For us, this means we are producing way fewer pork chops and other traditional staples. Our products show a global influence such as St Louis ribs or char sui tenderloin. This is great because the more recipes and inspiration we get from the rest of the world, the more we grow as an industry. We’re excited to see where this trend will take us.
