USDA: Global pork production to rise by 2% in 2018
According to analysts at FAS, the growth in production is expected to be based mainly on the increase in pork production in China and to a lesser extent on that from the United States and the European Union.
Meat demand in most countries is expected to increase based on economic growth. Furthermore, the FAS report states that relatively low feed prices will support producer margins.
China is expected to determine the 2% growth in pork production this year as a result of large investments in its domestic pig sector which will lead to growing hog numbers.
Nonetheless, EU production is also forecast up almost 2%, as producers have added sows in Poland, the Netherlands, and Spain.
The report also says that hog prices remained favorable throughout 2017, incentivizing expansion. "However, weak domestic demand and a challenging export outlook – owing to weaker demand from China and a stronger euro – are likely to pressure prices this year."
Pork production is also growing in Russia as a ban on imports from Brazil has boosted demand for domestic pork.
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