Tight pork supplies lift global prices

Pork shortages will be a key concern in many countries in the coming months, according to a report by analyst Rabobank.

The ongoing spread of porcine epidemic diarrhoea virus (PEDv) in the Americas and Asia would have a material impact on pork supply both this summer and in the years to come, it said. Russia faced a challenge in finding alternative supply following its ban on EU pork imports after African swine fever outbreaks, while oversupply in China was likely to continue, driven by high sow liquidation.

“PEDv has been the driving force pushing up pork prices, especially in the US, to record highs,” said analyst Albert Vernooij. “US futures climbed 30% in the first quarter of 2014 and are up 45% over last year, impacting consumers’ ability to source enough pork for their needs.”

In the UK, lack of confidence following the decline in breeding numbers in 2012 meant finished pig numbers were likely to remain tight for the rest of the year, said a report by BPEX. Slaughterings were likely to rise by 1%, with heavier carcass weights leading to a 2% rise in pigmeat production to almost 850,000t.