Global pig meat trade developments
The global pig meat trade will be subject to the usual ‘swings and roundabouts’ during 2012.
2012 promises to be another intriguing year on the world pig meat markets.
China made most of the headlines during 2011 – particularly as prices reached record levels on the domestic market during the final quarter of the year and imports also reached a new high. Prices have fallen back significantly since the beginning of 2012 but it is expected that rising pork consumption will continue to run ahead of the increase in domestic supply, therefore maintaining the need for imported supplies.
Pig production in Brazil is expected to increase by 3% during 2012 and exports are expected to recover accordingly.
US production is also forecast to increase during 2012 and US pork will be competing strongly in its major markets in SE Asia (especially Japan, China and South Korea).
Not for the first time, action taken by the Russian authorities has angered its EU trading partners. A ban on imports of livestock has been implemented due to concerns regarding the Schmallenberg virus. However, the ban has been extended to pigs in addition to cattle and sheep, despite the fact that pigs have not been implicated in any outbreak of the disease. The ban has not been extended to pork products but has included Meat and Bonemeal, of which Denmark has been a long term supplier. Animal disease outbreaks (more recently African Swine Fever) will continue to affect the supply of domestic pigs.