Rabobank sees continued expansion in pork sector

WASHINGTON, Oct. 18, 2017 – Rabobank analysts say the U.S. pork sector’s expansion could continue through 2025, driven by increases in different factors of production efficiency. In a recently released report, they say the recovery from Porcine Epidemic Diarrhea virus (PEDv), fluctuation of feed costs, and consumption increases were among factors that led to a turnaround with improved margins during the last decade. Analysts also point to increased production capacity and increased domestic consumption per capita as reasons for further expansion to the tune of about 11 percent – 2.8 billion pounds – from now until 2025. However, the report also notes the critical role of pork exports. To remain profitable, the analysts say, the U.S. will need to increase exports by about 400,000 tons: over 200,000 to Mexico, 100,000 to China, and an additional 100,000 distributed throughout the rest of the global market. Through 2025, exports “are projected to become the most important growth category of U.S. pork usage,” the analysts say.