Pork supply to face challenges in Europe
Global pork supply will grow in Asia and North and South America, but face more challenges in Europe. “While China continues to dominate global trade, China’s expected reduction in imports in 2021 will have ramifications for the rest of the world, especially in Europe, where trade bans on Germany are boosting local supply and weighing on the market,” according to Chenjun Pan, Senior Analyst – Animal Protein, Rabobank.
China's pig meat production has increased by 31% last year, according to official data, and the process of herd rebuilding is expected to continue in 2021 and 2022. As an effect, demand for pork imports will sharply decline from the record high of 2020, impacting the rest of the world. However, the US and Brazil can count on their domestic markets, with Brazil going for 2.5% growth in production, as the demand for pork in the domestic market is expected to rise.
Meantime, the single European market must adapt to new realities brought by Brexit and ongoing ASF-threats in eastern Europe and Germany. Also, the consumption in the EU market is making a slow recovery due to COVID-19 restrictions and lockdowns imposed in several countries.