Volatile Pork Prices Predicted for 2013

Feb 04, 2013

Rabobank Report: Higher Feed Costs Weakens Global Pork Price Expectations

Rabobank released its pork quarterly Q1, noting that while global pork prices starting off strong in 2013, it anticipated that there will be a weakening in prices in late Q1 and into Q2. The key factor for this trend is pressured coupled with slowing growth in global production levels.

The report outlines some of the key factors believed to influence pork prices for this year including – looking at the European production levels given the new animal welfare regulations, China’s demands for imports, and signs if US hog production will expand.

“Despite the higher feed input costs, the US swine breeding herd has modestly expanded and large scale farming continues to develop at a rapid pace in China, Russia and Brazil. There seems to be limited opportunity for a significant increase in pork prices, given this expansion. Chinese hog supplies appear to be sufficient, but their economy is recovering which could stimulate demand growth,” said David Nelson, Rabobank Analyst.

Overall, Rabobank predicts that global pork prices will be lower than previously forecasted largely due to higher feed costs and herd liquidation – which is happening in the U.S.

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.