Global pork production stabilizes and the industry returns to profitability

Published 2024년 5월 7일

Tridge summary

The article, citing Rabobank, highlights improvements in the global pork industry, with expectations for more producers to rebuild herds and a slowdown in herd contraction. This is due to improved supply-demand balance, productivity enhancements, and lower feed costs, especially with South America's robust crop production. Despite a dip in consumption in key Asian markets, pork remains a cost-effective protein option. The European Union is expected to see pork consumption stabilize, while North American consumption may decline slightly. The European Union's decline in production has led to a hole in global export markets, which other countries, including the United States and Brazil, are looking to fill. The United States is projected to surpass the European Union in annual pork export volume, and Brazil's pork exports are expected to benefit from an improved supply-demand balance in China.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to the report, conditions are ripe for more producers to rebuild their herds. However, producers in regions with ongoing health challenges or higher regulatory costs may experience a slower recovery pace. “The industry’s improved supply-demand balance has led to a slowdown in herd contraction,” said Christine McCracken, senior analyst of animal protein at Rabobank. “Although meaningful growth in the breeding herd is not anticipated until late 2024 or early 2025, productivity enhancements are contributing to increased production.” Rabobank noted that the United States, Canada and China are seeing healthier herds, which is translating into greater hog availability. Also contributing to a boost for the industry, global stocks of grains and oilseeds have run higher, leading to lower feed costs. South America reaped a robust crop that further pressured prices and provided relief from other inflationary costs. The continent’s crop success benefits producers around the world, ...

Source: Meat+Poultry