Global Pork Quarterly Q1 2022: Ongoing Uncertainty Into 2022
Covid-19 continues to be the largest wild card for the global pork supply chain – both production and demand are vulnerable to any disruptions. The pandemic has led to many changes in supply chain management and consumption patterns, which will keep evolving.
While many things are uncertain, one certainty is that input costs continue to rise – shipping rates, energy prices, and feed grain prices, together with labor costs, are challenging pork supply chains. In a slowing economy, producers and processors are finding it difficult to pass on all additional costs to consumers, so margins will be under pressure.
Global pork imports and exports will likely decline from 2021 levels, mainly driven by reductions in China’s import demand as local production recovers. Although traditional importing countries – mainly Japan and South Korea, plus some new importing countries – will likely increase imports, major exporters will need to find a new balance between supply and demand.
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These are the main highlights:
China: Weak demand puts downward pressure on pork prices. Pork production will grow, driven by improved sow quality.
