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Pork market to remain challenging - AHDB pork outlook

3rd Aug 2021 / By Alistair Driver

The pork market is set to remain challenging, according to AHDB’s latest Pork Outlook report.

UK pig prices are coming come under pressure from falling EU prices, global pork supply and demand issues and, potentially the post-COVID shift from retail to foodservice – and, with little sign of costs coming down significantly, margins are likely to remain in the red for the foreseeable future.

With the labour supply crisis currently compounding the problems, compromising the ability of processors to meet strong domestic demand, the growth of the UK pig is expected to slow during the remainder of this year and into 2022.

AHDB forecasts a 6% overall increase in pork production this year, with slaughter expected to reach 11.4 million head, nearly 5% higher than last year, boosted by increased throughput in the first half of the year as processors made their way through the backlog and carcase weighst also up slightly.

However, growth is expected to slow in the second half of the year and slaughter numbers are forecast to fall in 2022, as AHDB estimates a 2% decline in the breeding herd this year on the back of the industry’s financial struggles. A smaller breeding herd contraction forecast for 2022.

You can read more about AHDB's Pork Outlook HERE