Spain to put a limit on pig herd expansion
Although Spain has become the biggest pig meat producer in the EU and also its most important exporter, the swine industry needs to cool down for a while. The current situation in the EU pork market and abroad needs a moderate approach. According to the latest USDA report, Spanish pork production may remain flat at 5 million tonnes in 2022, due to higher production costs, lower demand in China, and decreased domestic pork consumption. Future expansions in pork production will be limited to allow farms to adapt to meet new EU requirements under the Green Deal strategy.
The USDA expects the breeding sow population to remain flat, mainly due to the increase in feed costs and the reduction of Spanish pork exports to China.
In 2022, Spain will likely see a continued decline in Chinese pork demand. Thus, a change of Spanish pork flow from China to the EU, returning to previous patterns for Spanish pork exports is expected, in which around 60% went to the EU and 40% to non-EU markets.
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