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Report Predicts Changes Ahead for EU Pork Industry

by 5m Editor
17 June 2011, at 8:31am

EU - The Community's pork industry is on the threshold of change, according to a new Rabobank report.

As global demand for pork rises, EU hog prices are failing to keep pace with the US, Canada and Brazil. A new Rabobank Industry Note examines two main questions: are EU price declines structural and, if so, how will this impact the EU pork industry in the coming years?

In summary, the report says:

  • the expected decline in EU pork production will change the industry landscape.
  • for slaughter and processing companies, supply security will become more important than price
  • growing export opportunities in China and some other markets will help to offset some of the burdens
  • further consolidation in the pork industry is inevitable, and
  • five criteria will be key to success as two business models emerge.