Covid-19 brings many uncertainties to the global pork market. With various disruptions to the supply chain, Rabobank has revised down pork production for 2020 in major producing countries.
Labor shortages, operational suspensions, soft demand, and channel shifting will force industry players to increase automation, adopt digitalization, improve plant working conditions, streamline processing, and integrate along the supply chain in order to optimize operations and secure margins,” according to Chenjun Pan – Senior Analyst, Animal Protein.
Global trading is challenged by even more uncertainties, due to rising geopolitical tensions, unsettled regional negotiations, and Covid-19. The Rabobank Five-Nation Hog Price Index has dropped in 2020 in response to these uncertainties. In China, imports are slowing down, Europe expects a lower production, and US prices are under pressure due to high hog inventories. Brazil, however, had higher exports in the first half of the year.