According to Farm Credit Canada’s 2025 Food and Beverage Report, Canadian meat processors—including those in the pork sector—are bracing for a tough year ahead amid economic uncertainty, trade disruptions, and shifting consumer preferences.
While meat product sales rose 1.4% in 2024, inflation-adjusted volumes declined for the first time since 2020. FCC Economics forecasts a 2.8% sales increase in 2025, but also a 3.6% drop in volume, signaling more pressure on processor margins.
For pork producers and processors, the path forward looks rocky. Demand for pork remains uncertain, and potential U.S. trade restrictions—like the revival of voluntary Country of Origin Labeling (vCOOL)—could create hurdles for Canadian exports. Given that exports represent 30% of all meat manufacturing sales, any disruption to major markets like the U.S. or China would have significant consequences.
The report also highlighted that pork and beef manufacturers will continue to battle elevated input costs, volatile commodity prices, and ongoing risks of animal disease outbreaks. Tight cattle supplies are expected to keep beef prices high, while pork will need to navigate wavering demand and competitive pressures.
Meanwhile, poultry processors have a more stable outlook, with chicken prices holding and consumer demand remaining strong.
Another ongoing trend is the underperformance of the plant-based protein segment, which has struggled to gain traction due to consumer concerns over taste, processing, and price—factors that continue to reinforce pork’s role as a preferred protein source.
Broader economic conditions are also weighing on the sector. Despite some relief from inflation, Canadians spent less on food and beverages per capita in 2024 for the fourth year in a row, underscoring the tightening grip of affordability on consumer behavior.
What it means for the pork sector:
As the industry looks ahead to 2025, diversification, cost control, and proactive market strategies will be crucial for pork processors and producers. Navigating trade policy uncertainty, responding to evolving consumer trends, and reinforcing pork’s value proposition will define success in the coming year.
Read the full FCC Report here: 2025 Food and Beverage Report
