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December 21, 2016

Rabobank forecasts a record high in pork exports to China during 2017

Rabobank, one of the banking entities that has a worldwide reputation for having an area regarding the investigation of the livestock evolution and meat has issued their report, Prices Under Pressure in a Supply-Driven Market: Global Outlook for Animal Protein in 2017, where it analyzes how the meat market will work throughout the next year.

Source: Eurocarne Digital

According to the report, China has increased its imports at record levels in 2016 and will continue on the same path during 2017 for pork as well as poultry, which results in the demand having an enormous influence in the global meat market.

The high production and strong competition between the different exporting countries will cause a decrease in meat prices on a world level during 2017.

In the case of the United States, Rabobank estimates that there will be greater production facing a strong domestic demand. The Dollar strength and the uncertainty regarding future commercial relations with China and Mexico once Donald Trump arrives at the White House may create possible obstacles for producers in the United States regarding exports.

Rabobank also forecasts that the market will gain complexity each day since there will be additional pressures to adapt to productive systems regarding the use of antibiotics in cattle breeding, the reduction of greenhouse gases or a strong competition amongst local producers. However, these difficulties may also be taken advantage of by the industrial producers.

According to Justin Sherrard, one of the experts at Rabobank (complete interview can be seen here), says, “the responsibility lays on the producers to mitigate the consumers concerns, particularly regarding animal health and welfare through the adaptation of their production models and supply chains. This is a challenge that will continue to be an important topic in 2017.

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