Spain threatened by a ham shortage amid greater Chinese demand

A surge in Chinese demand for Iberian ham means Spanish consumers face having to pay up to 10% more for one of their most-beloved delicacies, according to a recent article by the Guardian. Given that a full leg of Iberian ham can fetch anywhere from €150 to €600 ($175 to $700), Spaniards may face having to pay up to €60 ($70) extra.

China’s love of pork and newfound wealth has given them a taste for Spanish Iberian ham, which is widely considered as some of the world’s finest. The recent lifting of import restrictions to China, coupled with the Yuan’s favorable exchange rate against the Euro has increased the affordability of European tourism and products, which is making this luxury meat more accessible to the Chinese middle class.

Capturing Chinese interest

While the intricate and strict guidelines for Iberian ham are the reason for its superior quality, it is also the reason for its short supply. Indeed, the long curing process, which can last up to 48 months, and the fact that each pig requires at least two hectares of oak tree pastures (known as dehesa), which is limited, means that supply is vulnerable to surges in demand, especially from China’s rapidly growing middle class.

For Chinese consumers, the expected reduction in the supply of Iberian ham would give the delicacy a more exclusive and luxurious appeal which is likely to heighten interest. In fact, according to GlobalData’s 2016 primary consumer research, 30% of Chinese consumers would pay a premium for exclusive or unique products, and 41% share this sentiment for products with high quality ingredients. The popularity of Iberian ham has even encouraged some Chinese consumers to import raw frozen Iberian ham legs and attempt to cure it themselves to overcome the supply issues.

This demand for Iberian ham should encourage producers of Serrano ham, another popular type of cured meat in Spain, to expand their marketing efforts in a bid to capture the interest of Chinese consumers, with a focus on premium cues and Spanish heritage. This type of ham is derived from white mountain pigs in regions such as Granada, Almeria, and Teruel in Spain, and this could also potentially alleviate some of the capacity strain on Iberian ham production.

Spanish producers in other industries, such as the wine sector, may also wish to tap into this Chinese interest, especially given that Spanish ham is often paired with Spanish wine, such as fino sherry or manzanilla, to complement its flavour. Marketing this pairing to Chinese consumers may encourage a surge in demand for these complementary products, adding an additional boost to the Spanish economy.

Nevertheless, while the Chinese demand for Spanish ham brings about many economic benefits and opportunities, a fine balance must be struck to avoid excessively priced Iberian ham. If supply does shorten, the price of Iberian ham will inevitably rise and this could cause uproar in Spain as the delicacy has a strong place in Spanish history and tradition, especially over the Christmas period when it is often consumed.