Pork production will push prices down

Pig farming will have a significantly shorter year this year than in 2017. ABN Amro reports this in its sector forecast. The bank expects that higher pork production will put pressure on prices.

The demand for pork in Europe will be stable to slightly declining in the coming year. On the other hand, demand outside Europe (including Asia and Africa) will rise faster in the coming year. 

Export values
An estimated €2017 billion worth of pork from the Netherlands was exported abroad in 1,95. It is a growth of 7%, compared to 2016. However, this growth was only due to exports to countries within the European Union (EU), as exports to countries outside the EU decreased by 18% (mainly through China). 

China is an important buyer of pork. In 2016, China restructured the pig sector due to environmental and health concerns. It meant that pork production fell and the country had to import more, causing exports to China to increase by 2016% in 33. That effect was no longer present in 2017.

Valuation of meat
For European pig farms, export to Asia is important for a better value of the meat. This year, the market will be dominated by higher import tariffs from China on pork from the United States (US). These higher import tariffs offer opportunities for the European sector, reports ABN Amro in its report† However, it should be borne in mind that the pork from the US can put pressure on the market elsewhere. 

High quality is competitive advantage
Dutch pigs compete less on price and more on quality. After the pork scandal in China in 2013, hygiene, food safety and traceability have become more important. The Dutch pig sector is trying to draw attention to this, among other things with the Holland Pig.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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