Renta 4 | China has decreed the imposition of 19.8% tariffs on pork imports from the European Union. Following an investigation, China has concluded that the EU was exporting pork to China in terms of unfair competition.
However, given that Spain has cooperated in the investigation, the tariffs imposed on Spanish pork will only amount to 9.8%. Furthermore, this tariff does not affect Iberian pork.
Assessment: This news is negative for Faes Farma in principle, but could even turn out to be positive. Faes Farma has an animal nutrition division whose main source of income is the nutrition of Spanish pig herds, which accounts for around 13% of consolidated income. Spain is one of the main exporters in the European Union, the world’s leading exporter of pork, with China being the main importer. In principle, the imposition of a tariff on EU pork is negative for the EU and consequently for Spain, as it makes it less competitive than pork from other sources. However, given that the tariff imposed on Spain is lower, it could benefit from a higher tariff in some of its main competitor markets.
