Pig International - July/August 2017 - 6
6 ❙ PigInternational
WORLD PORK PRODUCTION
EU: exports create high prices
In March 2017, Eurostat published
the swine production statistics for the
EU-28, showing that the EU pig population dropped 1 percent to 147.3 million
head compared to one year ago. The sow
herd fell by 1.6 percent in the last year.
Since March 2016, swine production grew almost 5 percent in Poland, 3.6
percent in Ireland and 3 percent in Spain. On
the negative side, swine production fell in Hungary 7.6
percent, Slovakia dropped 7.3 percent while the Czech
Republic fell 4.9 percent. France, Denmark and the
Netherlands also had signiﬁcant reductions of their pig
populations, while Belgium and Germany also saw reductions, although not as steep as other countries.
According to ofﬁcial estimates, pork production in
the EU will only see small gains as the domestic market
remains weak. However, the EU is seeing much higher pig
prices in 2017 than it did a year ago. As 2017 started, the
only healthy looking trend in world swine industry came
EU exports set a record in 2016, thanks to Chinese demand for pork. In 2016, according to USDA statistics, the
EU accounted for 37.5 percent of the world's pork trade.
While the EU will beneﬁt from the strong export demand, exports are a wild card, since high prices can limit
competitiveness and returns.
The U.S. is expected
to see growth in 2017 since
demand at home and abroad is
improving, despite ending 2016
with some oversupply of pork.
According to the USDA, on December 1, 2016, the
sow inventory was 6.09 million head, 1 percent higher
than in December 2015. For that same period, the market
hog inventory of 65.4 million head was up 4 percent from
the year before.
However, by March 1, 2017, those numbers had gone
Regional shares of world pork
production in 2016
Although it dropped from producing 58 percent of
the world's pork in 2014 to just over 56 percent in
2016, Asia-Pacific is still by far the world's largest
regional contributor to global pork production.
down by about 1 percent from the previous quarter, but
were still 4 percent higher than on March 1, 2016. U.S.
pork prices were in freefall at the start of 2017, but the ofﬁcial projections are for signiﬁcant growth by the end of
the year, with exports forecast up 8 percent to a record 2.6
U.S. pork continues to face strong competition in
China from the EU, but lower pork prices should result in
higher shipments to Mexico, South Korea and Colombia.
In 2016, U.S. pork exports represented 28.5 percent of the
world trade, down from 2015.
Brazil: slow growth
Brazil continues to grow its
swine herd to meet increased
export demand as domestic
demand slowly improves, despite
a short-term crisis at the start of
2017 regarding food safety practices at
www.WATTAgNet.com ❙ July/August 2017