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China Pork and swine in 2012

2013-01-16

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With the growing feed costs, world pork production is unlikely to increase very fast in 2013.

According to USDA, global pork production is likely to reach a record high of 104.7 million tons in 2013. However, the profit for the breeder is unlikely to grow up in view of the rising feed costs.

China , accounting for nearly half of world production, is forecast one percent higher to a record 52 million tons. The growth is largely attributed to weaker consumer demand resulting from relatively slow economic growth, which, squeezed by rising feed costs, has tightened producer margins. Poor hog prices in 2012 slowed expansion of swine production facilities and further encouraged small-scale producers to exit the industry. This is expected to result in nominally lower breeding stock in 2013 and only a slight growth in hogs available for slaughter. However, production efficiencies continue to improve as large and modern farms expand at a faster pace than the exit of backyard operations. The government also continues to support the pork industry through boosting breeding stock imports to records levels, and occasional pork purchases in an effort to support prices.

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Record ID:ICP 05023006