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Rabobank expects pork producers to remain cautious on expansions

An ag economist says high costs and demand uncertainty are likely to limit pork production expansion into 2023.

But Christine McCracken, senior analyst for animal protein with Rabobank, tells Brownfield consumer demand has helped the sector this year.

“It’s retail demand that’s been the driver here and it’s been strong all year,” she says.  “We think that’s tailing off some, that’s part of our cautiousness as we look forward.”

McCracken says demand from Mexico and highly pathogenic avian influenza outbreaks limiting poultry supplies have also been supportive.

“It’s really been a function of the strength of their processing sector in the ham markets and part of that has been a shortfall in turkey imports,” she says.

McCracken expects returning poultry production to weigh on pork prices in the first part of next year but thinks demand will balance out before the end of 2023.