World pork production grows due to increasing world stocks of grains and oilseeds

Pork production at key players in this market began to return to profitability, according to data from analysts at Rabobank.

Rabobank experts among the prerequisites for increased production and further slowdown in the reduction of livestock, called a reduction in feed costs, due to an increase in world stocks of grains and oilseeds, which allowed to fully compensate for the growth of other costs. In particular, grain stocks were replenished thanks to a good harvest in South America. There were also positive market expectations due to the start of the spring planting season in the Northern Hemisphere, which also had a favorable effect on product prices.

Pork continues to be perceived by global consumers as a more accessible and cheaper source of protein, particularly against the backdrop of higher prices for its main competitor, beef.

Although supply and demand for pork and live stock have begun to seek balance, experts predict that under a worst-case scenario, pork supplies will remain tight over the next six months.

The outlook for global pork production in the second quarter of this year looks encouraging.

Tags: grain, pork