Market Pulse: Spain Loses Key Asian Markets, UK Virus Spread, and Brazil Delays Tracking

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Market Pulse: Spain Loses Key Asian Markets, UK Virus Spread, and Brazil Delays Tracking

Japan, Philippines, and Chile close borders to Spanish pork; UK bird flu wave accelerates

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Bo Pedersen
Chief Revenue Officer

Lead Story: EU Expands Restricted Zone as Spain Faces Global Ban Wave

The crisis in Spain continues to deepen. While three major non-EU trading partners have imposed national-level bans, the European Union has officially expanded its regional restriction zone.

EU Update: Zone Expanded to 91 Municipalities

Following an on-the-ground inspection, EU technicians have expanded the African Swine Fever (ASF) affected zone to cover eight counties (comarcas) and 91 municipalities in Catalonia.

  • Affected Areas: Vallés Oriental, Vallés Occidental, Baix Llobregat, Barcelonés, Maresme, Alt Penedès, Anoia, and Bages.

  • The Restrictions: Farms within this expanded perimeter are barred from exporting pork until 28 February 2026.

  • Strategic Exclusion: Crucially, the counties of Osona and Segrià—the heart of Catalonia’s industrial pork production—remain outside the restricted zone, preserving the majority of the region's export capacity for EU trade.

  • Origin Hypothesis: Catalan authorities now suspect the "patient zero" was a wild boar that consumed contaminated cold meats discarded by tourists or truckers at rest stops along the AP-7 highway.

Global Fallout: New National Bans

  • Japan: The Ministry of Agriculture temporarily suspended all pork imports from Spain produced on or after 28 November. This is a critical blow, as Japan is a high-value market for premium Spanish pork and processed goods like Jamón.

  • Philippines: The Department of Agriculture issued an immediate ban on all Spanish pork (domestic and wild), pig skin, and semen to protect its own recovering herd.

  • Chile: The Agricultural and Livestock Service (SAG) confirmed a suspension of pork products, further closing off the Latin American market following Mexico's earlier ban.

Implications

  • Export Displacement: With high-value Asian and American markets closing, Spanish exporters will be forced to redirect significant volumes of pork back into the European market. This sudden oversupply is likely to depress pork prices across the EU in the coming weeks.

  • Loss of Premium Value: Japan typically pays a premium for specific cuts and cured products. Redirecting this volume to lower-margin markets will severely impact processor profitability.

Suggested Actions

  • Price Negotiation: European buyers outside Spain should prepare for potential spot-market price drops as Spanish suppliers aggressively seek new outlets for displaced volume.

  • Supply Chain Shift: Importers in Japan and the Philippines must immediately activate contingency plans, shifting procurement to US, Canadian, or Brazilian suppliers to fill the gap.

UK: Bird Flu Hits Kent and Suffolk as Winter Wave Accelerates

Defra has confirmed two new outbreaks of H5N1 avian influenza in commercial poultry premises within the last 48 hours: one near Newington (Kent) and another near Chedburgh (Suffolk). This brings the total confirmed cases in the 2025/2026 season to over 60.

Implications

  • Biosecurity Zones: Strict 3km protection and 10km surveillance zones are now in force around the new sites. All poultry at the affected premises will be culled.

  • Housing Order Pressure: The geographic spread—from the South East to East Anglia—increases the likelihood of a mandatory national housing order being extended or tightened to protect the remaining winter flock.

ESG Watch: Brazil's Amazon State Delays Cattle Tracking to 2030

In a setback for deforestation-free supply chains, the Brazilian state of Pará (home to 26 million cattle) has postponed its deadline for mandatory individual cattle tracking from 2026 to December 2030.

Implications

  • Compliance Risk: This delay complicates compliance with the EU Deforestation Regulation (EUDR) for European buyers sourcing beef or leather from the region, as full traceability will now lag behind EU requirements.

  • Reputational Threat: Retailers with zero-deforestation commitments may need to reassess their sourcing from Pará if state-level tracking systems are not robust enough to verify claims.

Sources