Global: Pork producers cautious on rising uncertainties

Published 2023년 2월 4일

Tridge summary

The global pork market is facing challenges due to an slowing economy, which is putting pressure on consumption and causing uncertainties and volatility. While pork may be less impacted than other expensive proteins, household incomes, increased savings, and potential declines in specific channels could still affect demand. Inflation management will be key for many governments. Trade growth is expected to be limited in 2023 due to supply issues in exporting countries and rising supplies in importing countries, except in Brazil. China, as the world's largest pork market, could significantly impact the global supply and demand balance. The US, Mexico, and Canada are seeing varying trends in pork production and export strength, while Europe is experiencing tightening pork production with high pig carcass prices. China's pork market is experiencing oversupply and weak demand due to high Covid infection numbers, but demand is expected to rebound late in Q1. Southeast Asia is expected to see strong production growth despite ASF and high input costs.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Slowing economy weighs on demand, raising uncertainties and volatility - In a slowing economy, while pork is believed to be less impacted than more expensive proteins, there will still be some pressure on consumption. Pressure on household incomes, increased savings, and a potential decline in specific channels can all pressure consumption. Managing inflation will remain important for many governments, with interest rates needing careful calibration against consumer and business confidence. Limited upside for trade in 2023, as supply tightens in exporting countries and rises in importing countries – Trade will likely increase modestly in Q1 2023, mainly due to a low base last year. However, it may find growth difficult to sustain through 2023, given the slow production in major exporting regions, mainly the EU and US. By contrast, Brazil, which continued to grow exports in 2022, is expected to increase production and exports this year. The further recovery/growth in local ...
Source: EuroMeat

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