EU pig meat production this year is forecast to fall 0.6% from last year to 23.4 million tonnes carcass weight equivalent (cwe), pushing up prices, according to the latest (Summer 2017) short-term outlook report by the European Commission.
However, the recent rise in EU pig prices is expected to have incentivised producers to increase output. Looking ahead to 2018, pig meat production is pegged to remain relatively stable on 2017 levels at 23.5 million tonnes (cwe).
The outlook report further said that while export demand for EU pig meat continued to rise during the first quarter, driven predominantly by China, it has started to tail off. Total pig meat exports this year are projected to fall 9% year-on-year to 2.5 million tonnes (cwe).
A combination of higher EU prices and tight supplies, plus a fall in overall Chinese demand, amongst other factors, contributes to the overall projected decline.