Pork producers around the globe should be watching out for a shift in protein consumption, lower feed availability and a rapid improvement in pork productivity for Q2 2023 and beyond. According to latest RaboResearch report, Global Pork Quarterly Q2 2023: Consumption in Focus as Pork Industry Plans for the Future, weaker economic growth is beginning to take a toll on pork consumption, not only in the United States, but overseas as well.
"We see persistently high retail prices limiting consumption of all proteins. Consumers continue to conserve capital by shifting everyday purchases to lower-value protein options, switching channels, and moving to smaller pack sizes," says Christine McCracken, senior analyst – Animal Protein at Rabobank and author of the report.
For many markets, the uptick in retail pork prices can be attributed to changing supply, but also increased labor and energy costs throughout the supply chain. Lower per capita income in several regions is expected to continue to impact purchasing decisions in 2023
McCracken notes the 2022 industry optimism, stemming from an upward shift in pork consumption (and prices) in some markets, and expectations of a 2023 recovery after the pandemic, contributed to the "planned supply growth in 2023"—a growth that will take time to ease.
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