Pork consumption remains “under pressure” in Europe due to ongoing high prices, according to latest research.
EU pork trade declined “materially” in the first four months of 2023, and trade is expected to become “weaker” in the second half of this year according to a new report.
The quarterly pork report released by Rabobank today (Monday, July 31), also highlighted that “tighter supply” in the EU “restricts” shipments out of the region.
It added that this tight supply supports high prices, in turn “pressuring consumption”.
The report also outlined animal feed prices as a cause for weaker trade.
It stated that corn and soya bean prices were “volatile” entering July, due to weather issues, along with “uncertainty” surrounding the Black Sea grain corridor.
Disease challenges were also cited as a cause for declining trade.
For the EU in particular, the report stated that African swine fever (ASF) continues to influence production.
While outbreaks generally slowed in the second quarter of the year, it added that they appear to be persistent in some regions.
Pork trade worldwide
Senior analyst for animal protein at Rabobank, Chejun Pan, said that performance varies from region to region, however subject to availability and prices in the local market.
“In Europe, pork consumption remains under pressure due to ongoing high prices. In the US, demand was slightly below expectations to start the summer, as uncooperative weather and poor air quality challenged the start of the grilling season.
“And in China, pork consumption remains weak, due to the underperforming economy and heat waves across the country,” Pan said.
The report added that smaller than expected soya-planted areas and larger than expected corn areas in the US caused increases in feed prices, thus impacting production.
Pan added that porcine reproductive and respiratory syndrome (PRRS) remains a challenge in Spain, causing a “material drop in production”.