Chinese authorities granted Atria's Nurmo production facilities in Finland a licence to export pork to China. This opening to what are by far the largest pork markets in the world offers substantial growth opportunities for Atria.
The export licence for pork granted by Chinese authorities enables Atria to expand its export operations into a new, strongly growing market area, which is also the biggest in the world. The export licence creates good opportunities for increasing export volumes and diversifying the product range to all products that can be produced from a pig carcass.
The export licence applies to Atria’s Nurmo production facility or, in practice, its new pig cutting plant and related operations. The plant is the first Finnish production facility to have been granted a licence to export pork to China. The export licence was preceded by a nearly ten-year process of negotiations on political, official and corporate levels. China’s food legislation is considered one of the strictest in the world.
China is by far the largest market area for pork in the world. The country’s production and consumption of pork accounts for roughly 55 per cent of the world’s pork production, totalling about 55 million tonnes a year. In 2016, imports of pork and the by-products of slaughtering to China grew by about 35 per cent, and came to a total of approximately 3.5 million tonnes. The countries that increased their exports most in this respect were Spain, Germany and the United States. The growth in exports destined for the Chinese market was also significant in Denmark. China’s need to import pork has grown due to a reduction in the number of pigs in the country. High demand has kept the average prices of pork in China strong, although province-specific differences in prices are substantial. 1)
1) Source: Rabobank, 2016