Source: Tom Johnston, MEATINGPLACE, 10/13/17


Increased production and additional processing capacity, and the likely improvement of margins, will help the U.S. pork industry remain in expansion mode through to 2025, according to a new report from the RaboResearch Food and & Agribusiness group.

“Exports are necessary for future expansion but are not guaranteed,” analyst Sterling Liddell said in a news release. “Mexico continues to grow its sow inventories and slaughter plants, making it only a matter of time before Mexico boosts domestic production.”

The report, “Steady Growth Ahead for the U.S. Pork Industry,” states that efficiency and slaughter capacity will be the determining factors between stagnancy and expansion. 

“Geopolitical issues affect the global pork trade,” analyst Justin Sherrard explains. “Specifically, U.S. pork meat exports to certain markets such as Mexico and China are likely to face domestic competition as production in those certain countries is expected to increase.”

It is critical, Rabobank says, for producers to understand supply, demand and the potential for increased market volatility.

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