Info
Published on: April 17, 2015
Social media pitch
The global pork industry has been searching for stability during Q1 2015, with strong supply growth http://pr.co/p/00258l
Details

Rabobank Pork Quarterly Q2: High-flying Pork Prices Come Back Down to Earth

According to the latest Rabobank Pork Quarterly report, the global pork industry has been searching for stability during Q1 2015, with strong supply growth and relatively weak demand driving the market.

Pork prices are sharply lower, as robust global supply growth (driven by the US, Russia and Brazil) has outpaced rather subdued demand, dragging producer profitability into negative territory.

Rabobank animal protein analyst Albert Vernooij says: “The increasing competition in the global export market will result in continuous price and margin pressure in most countries around the globe. Therefore, after the buoyant&mdashat least price-wise&mdashlast couple of years, the global pork industry is slowly moving towards the bottom of the cycle.”

Outlook for global and regional markets:

  • In the US, as supply recovers after PEDv, the question is as to what degree recovery will be coupled with the strengthening US dollar and lower prices.
  • In the EU, prices will follow seasonal developments, but will remain lower than the historical average and below break-even level.
  • With the industry slowly improving, prices bottomed out in China during March.
  • Brazilian prospects remain positive, but less buoyant than in Q1, driven by pressured domestic consumption and difficult Russian export negotiations.

For more information please contact the report’s author:

Albert Vernooij: albert.vernooij@Rabobank.com, EU & Russia +31 30 71 23834

William Sawyer: William.sawyer@Rabobank.com, USA +1 +1 212 916 7991

Chenjun Pan: chenjun.pan@Rabobank.com, China +86 10 56951155

For other information, please contact Rabobank press office:

k.verheul1@rn.rabobank.nl+31 30 21 66918

For your social media ready version of this press release:

http://rabobank-food-agribusiness-research.pressdoc.com

www.Rabobank.com/f&a

www.FAR.Rabobank.com

Follow us on Twitter:

@rabofoodagri

NOTE

  • The report/presentation attached is sent specifically to enable journalists to do their work, i.e. as the basis for an article or news report, or as preparation for a telephone or personal interview with a content expert. In line with good journalistic practice, a reference to the source would be appreciated
  • Please note that it is expressly forbidden to forward the attached report/presentation in any form to third parties, or to publish this report either partially or entirely on a website.
  • Rabobank has recently updated the distribution lists for Food & Agribusiness Research reports. If you have no interest in further receiving this information, please let us know and we will remove your email address promptly.
Quotes
“The increasing competition in the global export market will result in continuous price and margin pressure in most countries around the globe. Therefore, after the buoyant—at least price-wise—last couple of years, the global pork industry is slowly moving towards the bottom of the cycle.”

— Rabobank animal protein analyst Albert Vernooij