USDA lowers global pork production forecast by 1%

In exact figures, 115.5 million tons were previously expected, which is 300 thousand more than last year. The downward adjustment was made due to expectations for a decline in the indicator in the European Union, as well as China and Brazil. For the European bloc, the estimate was reduced by 450 thousand tons to 20.7 million. The reasons were the changing preferences of European consumers and ongoing regulatory pressure on the domestic pork market. In China, the production of this meat is estimated at 55.2 million, which is 750 thousand tons less than the old estimate and 1.7 million less than last year’s level. Prospects for this country are depressed due to weak demand, which is inhibiting the expansion of domestic production capacity. For Brazil, the forecast was reduced by 150 thousand tons - from 4.825 to 4.675 million tons. This figure is given taking into account the demand situation in China.

Also, due to reduced demand from China , the forecast for global exports of this meat for the current year was also reduced - by two percent to 10.2 million tons. For all of the above players, the score has been reduced slightly. For Brazil, it amounted to one and a half million tons against October expectations of 1.53; for the countries of the European Union and the United States during this time it decreased from 3.2 to 3.1 and from 3.15 to 3.12 million tons, respectively. The export situation for all three is due to a decrease in production. However, for the United States, it is smoothed out by the continued strong dynamics of supplies to such key importers of this meat as Canada and Mexico.