Source: Chris Scott, MEATINGPLACE, 7/31/17


Price developments, new trade deals and more challenging business environments are driving new pork trade fundamentals, according to a new report from Rabobank.

The research company’s latest Global Pork Quarterly report says “traditional (pork) importing countries have reported significant growth.” Rabobank analyst Chenjun Pan noted, for example, China’s pork imports were flat in the first five months of 2017 after significant growth since the first half of 2016.

Pork prices in China have fallen by 30 percent from last year’s record levels and pork production in China are expected to increase by 2 percent in 2017, the report said.

Rabobank’s report also found that U.S. pork exports still face uncertainty because of potential trade policy changes and a strong currency, but have been better than expected so far in 2017.

Meanwhile, European exports are slowing down because of strong prices with tight supplies and firm demand maintaining upward pressure on prices that are starting to challenge exporters, the report said.

Finally, political turmoil in Brazil continues to impose “great challenges” as exports have declined significantly in recent months. Brazil’s pork market is still expected to deliver a positive result thanks to lower supply and favorable feed prices and exchange rates, the report projected. 

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