A new report from Rabobank predicts farmers in 2017 will continue to suffer from downward pressure on global meat prices.
The report, “Prices under Pressure in a Supply-Driven Market: Global Outlook for Animal Protein in 2017,” found that high supply and a competitive market are expected to push down current prices.
The Netherlands-based Rabobank also predicts China will continue to exert a huge influence on global meat markets. The world’s most populous country increased pork imports to record levels in 2016, and the report forecasts these import levels will remain constant next year.
In the U.S., production is expected to continue growing, but consumers’ appetites are being tested as record levels are reached. The strong dollar and uncertainty over future trading relationships with China and Mexico create potential headwinds for American producers, the report said.
The U.S. is currently the world’s largest exporter of pork to China, excluding the European Union.
The U.S.’s pork exports made the news this week as they recorded double-digit growth over last year.
U.S. Department of Agriculture statistics showed that October pork exports totaled 201,936 metric tons, up 14 percent year-over-year and the largest monthly volume since March 2014.
Export value was $521.1 million, up 16 percent. For January through October, export volume was 6 percent above last year’s pace at 1.86 million metric tons, while export value was up 3 percent to $4.79 billion.
Also this week, U.S. hog slaughter broke new records. Market analyst Ron Plain said hog slaughter for the week ending Dec. 16 totaled 2.544 million head, up 4.1 percent from the previous week, up 1.8 percent from the same week last year and 1,000 head more than the old record set two weeks ago.
I sure wish China would grow more of its own hogs. We already have more than enough pig feces to deal with. Let the citizens of the People’s Republic put on hip boots and hold their noses.
According to the USDA Foreign Agricultural Service, in 2015 China produced 53.5 million metric tons of pork, more than the rest of the world combined. The EU was second with 23.2 million metric tons and the U.S. third at 11.3 million metric tons.
It’s just about enough to get a person to swear off bacon.
I’m with Nick, and I do not eat pork, the dirty white meat, anymore. Now Ambassador Branstad will see up front what Iowa is slowly becoming, a little China pig sty! In 2019 there will be more pig manure spread on the Iowa fields to pollute Iowan’s water than all of the sewage plants in the U.S. combined, even more concentrated than in China, so when Branstad returns, he’ll feel right at home.