Rabobank Pork Quarterly Q4 2017 published
China’s pork farming structure has been impacted by stricter environmental policy enforcement. Despite the exit of many small farms, we maintain our forecast for 2017, with production increasing by 2%. Prices will continue the downward trend, after holding at strong levels in summer. Pork imports were down by 27% in the first eight months, but may rebound over Q4 2017.
China’s import demand has been one area of distortion in global pork markets over the past one to two years, and a diversion in prices for certain cuts has been another. “Pork bellies have reached record levels in the US and some other markets, driven by strong demand, especially from foodservice,” says Justin Sherrard, RaboResearch Global Strategist – Animal Protein.