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Pork sector under pressure due to high costs

13 April 2022

Producers’ returns will be challenged by rising costs – including feed, energy, freight, herd health, and labor expenses. Production growth is expected to slow, as is global trade. Uncertainty remains regarding how consumers will respond once higher costs are passed on to them.

Higher feed and energy costs are expected to pressure margins. A disappointing South American crop and grain export uncertainty are exacerbating an already tight global feed supply. Producers will focus on efficiencies and limit herd growth.

The global pork trade in 2022 is expected to decline, driven by weaker economic trends and ample pork supply. Slower 1H 2022 exports will likely continue, as buyers remain cautious due to global economic uncertainty and higher-cost pork, unless import markets find themselves short.

Rabobank.com

Source: Rabobank

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Pork sector under pressure due to high costs

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