Market Pulse: Spain Secures Regionalisation Wins with UK & China Amid ASF Crisis

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Market Pulse: Spain Secures Regionalisation Wins with UK & China Amid ASF Crisis

Latest Spanish ASF news: UK reverses ban to accept regionalisation, China maintains trade, while Catalonia declares emergency and pork prices crash.

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Bo Pedersen
Chief Revenue Officer

Trade War: The "Asian Domino" Effect vs. Western Regionalisation

The global response has bifurcated into two distinct geopolitical blocks. While European and North American partners move toward containment (regionalisation), the Asian market—critical for Spain's offal and premium cuts—is rapidly closing its borders.

The "Regionalisation" Lifeline (Europe & China)

In a critical win for Spanish diplomacy, key partners have agreed to ban only the affected zone in Barcelona:

  • UK Reversal: In a major policy shift, Defra (UK) announced it will align with EU regionalisation measures, effectively lifting the "hold" on Spanish pork from outside the Barcelona exclusion zone. This reopens a market that bought 56,000 tonnes of Spanish pork in the first nine months of 2025.

  • China: Continues to honour the regionalisation agreement, restricting only the province of Barcelona.

  • Industry Stance: In a statement released today, Interporc fully backed the government's containment measures, emphasising that "full regionalisation" is the only viable path to saving the sector's €8.8bn export value.

The "Total Ban" Bloc Expands (Asia & Americas)

The list of countries suspending all Spanish pork imports has grown in the last 48 hours, creating a massive displacement of volume:

  • New Additions: Thailand and Malaysia have joined the blockade. Malaysia is particularly significant as Spain holds a 35% market share there.

  • Confirmed Bans: Japan, Philippines, Taiwan, Mexico, and Chile remain closed to Spanish pork.

  • Impact: The loss of these markets is catastrophic for "fifth quarter" products (ears, snouts, trotters) which have little value in Europe but command high prices in Asia.

Local Government Update: Catalonia Declares "Emergency Situation"

In a decisive move today (9 December), the Generalitat de Catalunya has officially declared an "emergency situation" regarding the African Swine Fever outbreak. This legal status allows the government to bypass standard public contracting procedures to accelerate containment efforts.

  • Fast-Track Procurement: The declaration enables the immediate purchase of drones, thermal cameras, traps, and veterinary supplies without waiting for tender processes.

  • Financial Shield: The government has activated a €20 million low-interest credit line via the Institut Català de Finances (ICF) to support farms suffering from movement restrictions and price collapses.

  • Long-Term Battle: Spanish authorities and industry leaders are now publicly acknowledging that eradicating this viral focus may take "several years," shifting expectations from a short-term fix to a long-term containment strategy.

Market Impact: Mercolleida Crash Confirms Economic Pain

The uncertainty has triggered an immediate and severe correction in the Spanish reference market, Mercolleida.

  • The Drop: In an extraordinary session, the reference price for fattening pigs plummeted by €0.10 per kg, settling at €1.20/kg.

  • Piglet Collapse: 20kg piglet prices crashed by €5.00/head to €31.00, signaling that farmers are rapidly losing confidence in future fattening profitability.

  • Total Correction: Combined with previous adjustments, Spanish pork prices have fallen roughly 21.4 cents in just over a week—a historic devaluation reflecting the sudden surplus of meat that can no longer be shipped to Asia.

Implications for European Buyers

  • Price War: Spanish processors, desperate to clear cold storage, will likely undercut Northern European suppliers (Germany, Denmark) in the intra-EU market. Expect aggressive offers on hams, shoulders, and loins in the coming weeks.

  • Processing Opportunity: Pet food and sausage manufacturers in Europe may find an abundance of high-quality trimmings available at distressed prices due to the Asian export blockage.

Sources

Market Pulse: Spain Secures Regionalisation Wins with UK & China Amid ASF Crisis | MeatBorsa