November 22, 2011

Global pork production forecast: New record in 2012

Global pork production is predicted to increase 2% on-year to a record 103.4 million tonnes cwt in 2012, says USDA. 

The growth is expected to be underpinned by a recovery in South Korean and Chinese production levels, as well as steady growth from the US, Russia and Brazil.

According to the USDA, China's production is expected to increase 4% in 2012 on last year, to 51.3million tonnes - recovering from swine disease issues and poor producer returns. Higher prices and recent government measures have also encouraged production improvements.

US production is forecast to increase 2% on-year, to 10.5million tonnes, as a result of productivity gains. Greater supplies in comparison to competing proteins should boost domestic demand and consumption. Domestic consumption of pork is also increasing in Brazil, as consumers look for an alternative to higher beef prices. Hence, production is forecast to increase 2% on-year to 3.3million tonnes cwt.

All the other major pork producing nations are expected to record yearly production increases in 2012, with Russia (2million tonnes), Canada (1.8million tonnes) and Japan (1.3million tonnes) expecting a 3%, 1% and 2% on-year rise, respectively. Production in South Korea is forecast to rebound 21% over the same period, to 1million tonnes, as the industry rebuilds following the foot and mouth disease outbreak.