A major disease outbreak in overseas pig farms in 2022 significantly affected the demand for imported meat products. Traces of a viral pathogen (African Swine Fever) were discovered in pork products imported from several European suppliers. Investigations revealed that many consumers had very little knowledge about the precise origin of their processed pork products, with manufacturers failing to clarify sourcing on packaging.
As a direct result of the supply concerns, the market share of domestically-sourced pork in British supermarkets rose from 74% to 78% in late 2022. Consequently, the price that UK farmers received for domestic pork rose by 5%.
UK livestock farmers are also experiencing a boost from growing middle-class demand in emerging markets such as Vietnam and Thailand. British meat products are highly regarded overseas for their third biosecurity, traceability, and robust supply chains. This contrasts with several domestic scandals in Asian markets involving contaminated livestock feed. As a result, commercial export agencies are bypassing traditional wholesale markets to secure long-term supply contracts directly with UK farms.
Assess the likely impact of a 5% increase in the price of British pork on the market for poultry.
