According to the report, this supply increase creates the risk of oversupplied global markets in the face of the slowing imports into China.

Chinese fresh/frozen pork imports is reported to have decreased 25% last year to just over 1.2 million tonnes from the previous year.

China's domestic pork production in 2017 was estimated to have increased 2% year-on-year as the expansion of larger farms continues.

Rabobank expects China's production growth to continue in 2018. Even then, it expects Chinese pork imports to rebound this year after a sharp decline in 2017.

"We expect competition in key importing markets, particularly in China, to intensify", says Justin Sherrard, RaboResearch global strategist – animal protein.

The Rabobank report, meanwhile, said that EU pig producers have reinvested for growth. "As a result, we expect increased production to reach the market beginning in 2018. The additional supply is expected to pressure pig prices and cutout values. This price decline could stimulate consumption and exports".

In the US, a 4.3% growth in pork production will necessitate the free flow of exports and healthy domestic demand, the report said. "Strong exports to start the year have intensified the competition for market hogs, to the detriment of packer returns. This increase has already provided an opportunity for producers to secure very good margins for much of 2018".

In the case of Brazil, the report said pork demand is expected to increase, along with the improving economic conditions. "The expected stabilisation of feed costs will continue to support good profitability for hog producers for much of 2018. Pork exports to China in 2018 are expected to rebound strongly. Russia's ban on Brazilian pork remains a wild card for 2018", the report said.  Rick Alberto