As we all know, Chinese pork imports went through the roof in 2016. New regulations in China were a key driver as backyard family holdings begin to give way to large-scale farms. The improved efficiencies gained in this process over the next few years will be a big risk to imported product.
In the meantime, the official numbers for 2016 are in and Chinese pork imports reached 1.6+ million tonnes. This is more than double the amount imported in 2015 (777.5t). The pace of this increase slowed as we got closer to the end of the year, so the question on everyone’s mind is, what happens in 2017?
Increased U.S. production, combined with an expectation of improved Chinese domestic production, suggests demand could be under pressure. However making forecasts in this area is a fool’s errand, so we will all just have to watch this space.