The global pork production expected to rise by 2% in 2018
Analysts from FAS expect China's pork production to rise for the second consecutive year as producers respond to positive returns.
"Additions to the sow herd and higher finished weights will both drive production during 2018," the USDA statement read.
Output in Russia, the Philippines and Mexico will report a boost due to a robust consumer demand for pork.
Due to a stagnant domestic market and export sales, the only major producer to reduce output will be the European Union.
When referring to global pork exports, the FAS analysts expect an increase of nearly 3% in 2018 driven by strong demand from Mexico, the Philippines, and South America (Argentina, Chile and Colombia) where competitive prices support gains in per capita consumption.
The top importer is expected to remain China, but analysts warn that shipments will fall for the second consecutive year due to rising domestic production.
The European Union will remain the largest exporter, with shipments reaching 2.8 million tons. Still, this export growth will be challenged by declining shipments to China and an appreciating euro.
In the US, production is forecasted to go up by 4% in 2018, continuing strong growth in 2017.
"Producers have responded to robust domestic and export
demand by farrowing more sows while the number of pigs per litter is at record levels. Continued production growth is expected to pressure hog prices in 2018 and help spur a near 5-
percent gain in exports," according to FAS.
The main market for the US pork shipment will remain Mexico, aided by relatively high domestic prices. Analysts say that exports will also remain resilient to Asia, especially to Japan and the Philippines.
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