Growth predicted for European pork market in 2020
Following an estimated decline in 2019, EU pork production is expected to increase by 1% in 2020, according to a report by Rabobank.
The report references high prices and strong export demand will allow the production of EU pork to grow, however, uncertainties such as the Brexit trade-deal negotiation, will affect EU production and trade.
In the US, pork production in 2020 is expected to rise 3.2% year on year, as a result of modest growth in the breeding herd and improvements in productivity.
Pork export demand is expected to remain robust, due to increasing shipments following the implementation of the trade agreements with China and Japan. However, labour shortages continue to be a key constraint in 2020, as increases in hog supplies continue to outpace packer capacity.
A rise in disease, particularly from African swine fever (ASF) will continue to challenge the global market and will remain the major change driver in global animal protein in 2020.
Chenjun Pan, senior animal protein analyst, said: “Although the severity of ASF impact is subdued in some regions, the scope of the disease has expanded over recent months. The ramifications in 2020 will lead to continuous caution on production expansion in some regions and higher import demand on the global balance sheet.”