In 2022, the sow herd in the EU27's major producing countries experienced a contraction due to negative producer margins, caused by high feed costs and low piglet prices in an oversupplied market. The most significant declines were seen in Poland, Germany, and Denmark, with England experiencing a 17% reduction in its sow herd, leading to a projected 10% decrease in UK pork production in 2023. The decline in replenishment of Europe's pig herd in the second half of 2022 is attributed to ongoing cost pressures, low export demand, and pressure on domestic consumption. High inflation in 2023 is expected to continue squeezing consumer budgets, pressuring pork demand. However, pork demand might benefit from relatively high chicken prices due to expected supply restrictions from avian influenza. The EU27's pork exports are predicted to continue their decline, albeit at a slowing rate, with a potential lift in exports to China in the first half of 2023 due to anticipated tight pork supply in China. In Germany, additional animal welfare regulations and export restrictions from African Swine Fever, along with low returns, will result in further herd contraction.