TRUST AND TRANSPARENCY WILL SHAPE GLOBAL MEAT PATTERNS
The global agri-food sector is likely to be more resilient to the crisis than some other sectors despite the challenges it faces. While global meat production is expected to contract for the second consecutive year, global trade has increased due to China’s ongoing pork shortage caused by ASF. Global processing capacity has been reduced due to social distancing measures putting farmgate prices under pressure. Pork prices have softened in H2 2020, with increased supply from Brazil, Europe and the US, but will remain high relative to previous years due to robust import demand from China and export restrictions on ASF-affected areas.
A focus on animal disease outbreaks, food security and transparency in the supply chain is likely to have a significant influence on the evolving world protein market although trade policies such as the China/US trade deal or related to Brexit will continue to influence world meat trade patterns. In these volatile times, Devro’s reputation for being a strong and trusted supply partner will be key.