Countries fight for top pork trading spot
The EU, US and Canada battle it out for China’s pork market this year
By Kate Ayers
In the first quarter of 2018, the global pork supply is expected to continue rising, mainly driven by the increased production in the United States, Canada and Brazil.
And market analysts have been monitoring the Chinese demand for pork closely.
“The most significant story in global pork markets has been the slowing imports to China, which creates a risk of oversupplied global markets,” Chenjun Pan, RaboResearch senior analyst for animal protein, said in RaboResearch’s global Pork Quarterly release on Wednesday.
“However, we do expect China’s imports to pick up somewhat over the rest of the year, leading the EU, the US, and Canada to continue their battle for China’s pork market in 2018.”
The report outlines the state of pork production in several countries.
The 4.3 per cent growth in US pork production will require the free flow of exports and strong demand within the country, according to the release. Thriving exports so far this year have increased the competition for market hogs, providing the opportunity for American pork producers to do well throughout 2018.
While pork trade will face challenges, the report focuses on the intensification of competition in importing markets.
“Expanding production in most regions means exports become more important in 2018. We expect competition in key importing markets, particularly in China, to intensify,” Justin Sherrard, RaboResearch global strategist for animal protein, said in the release.