International

Market readjustments and waves of uncertainty for the global swine sector

Pork

Covid-19 continues to be the largest wild card for the global pork supply chain both production and demand are vulnerable to any disruptions, warns Rabobank.

Posted on Jan 31 ,10:24

Market readjustments and waves of uncertainty for the global swine sector

Pandemic has certainly taken its toll on global pig trade and will continue to do so, according to Rabobank analysts. The pandemic has led to many changes in supply chain management and consumption patterns, which will keep evolving, warns the bank in its first quarterly report for 2022.
"While many things are uncertain, one certainty is that input costs continue to rise – shipping rates, energy prices, and feed grain prices, together with labor costs, are challenging pork supply chains. In a slowing economy, producers and processors are finding it difficult to pass on all additional costs to consumers, so margins will be under pressure.

Global pork imports and exports will likely decline from 2021 levels, mainly driven by reductions in China’s import demand as local production recovers. Although traditional importing countries – mainly Japan and South Korea, plus some new importing countries – will likely increase imports, major exporters will need to find a new balance between supply and demand," the report says.
Here are the main highlights for the next three months:
- China: Weak demand puts downward pressure on pork prices. Pork production will grow, driven by improved sow quality.

- Europe: Oversupply in Europe maintains downward pressure on prices. ASF spreads to northern Italy, potentially complicating trade.

- US: Reduced hog supplies in 1H will support prices and help offset rising costs. Covid disrupts slaughter and distribution, threatening demand.

- Brazil: Dry weather raises feed prices again. The election year is expected to bring more volatility to the hog market.

- Southeast Asia: Both Covid and ASF outbreaks impact Southeast Asian pork markets. Pork production in Vietnam and the Philippines will grow, albeit slowly.

- Japan: Demand is weakening as Covid keeps spreading. Pork imports are strong, as beef is more expensive.

 NEWSLETTER - Stay informed with the latest news!

Comments





Similar articles

Brazil

Canada opens market for 5 Brazilian pork processors

A week after authorizing the first Brazilian plants to export pork, the Canadian health authoriti...


Read more Read more
China

How COVID-19 restrictions impacted China's food industry

The new lockdown policy applied in China, along with ‘zero-covid’ commitment from loc...


Read more Read more
EU

Pig prices advance in Spain and Belgium

Pig prices advanced in Spain (+ 2 ₵) and Belgium (+ 4 ₵) over the last week, while the rest of th...


Read more Read more
Websolutions by Angular Software and SpiderClass