Global pig prices have softened in recent weeks to the extent that the Chinese government announced in late April that it has initiated procurement for its frozen pork reserves, according to the report, Rabobank Pork Quarterly Q2 2011. However, pig prices are still high by historical standards in order to offset high feed costs.

With Chinese hog prices projected to rebound at the end of the year, the prospects remain positive, with supply discipline in the key export markets essential to support elevated price levels.

In the longer term, it is Rabobank’s view that growth in global meat protein consumption will continue to lag income and population growth in important emerging markets, raising volume risks to processors and price risks to buyers, from processors to consumers.