In a scenario marked by significant challenges, the global pork industry faces a year of adjustments. The latest Rabobank report for the first quarter of 2024 shows a slowdown in production, although demand remains strong. This outlook has direct implications for the economy and the agricultural sector, both globally and for the Chilean market.
Rabobank’s analysis points to a contraction trend in pig farming in the main producing regions, which will result in declining or stagnant production throughout this year. Factors such as disease add pressure to the industry’s existing challenges, painting a difficult scenario for producers.
However, the report points out a bright spot: a drop in feed prices, thanks to the lower prices of corn and soybean, which could alleviate some of the financial burden on producers. Furthermore, pork consumption seems to be holding up well, becoming one of the preferred options for consumers over other animal proteins that face inflationary pressures.
Chile shows encouraging figures in this challenging global context. According to data from ChileCarne, in 2023, Chilean pork production reached 583,000 tons, recording a 1.1% year-over-year growth. The sector’s strength is also reflected in exports figures, with 297,000 tons cwe of pork sent abroad, producing a revenue of 743 million USD.
In the words of ChileCarne’s President, Juan Carlos Domínguez: “Despite global challenges, the Chilean pork sector continues to prove its capacity to adapt and stay competitive. Export figures, especially to key markets such as China, South Korea, and Japan, are a testament to the quality of our product and the demand for it.”
This scenario poses both challenges and opportunities for the pork sector. Adaptation to new market realities, innovation in production practices, and expansion into emerging markets will be key to navigate 2024. With a strategic approach and a focus on sustainability, the pork sector can overcome current and future obstacles, strengthening its position in the global market and contributing to Chile’s economic growth.
