This year, prices on the meat market will be under pressure because of the increase in supply. Although the consumption of meat in the world continues to grow, the highest offer and increasing competition in the market will create new challenges for manufacturers and exporters of meat by increasing the downward pressure on prices and profits.
Additional calls for representatives of the meat industry can create a number of other issues related to the reduction in the use of antibiotics, environmental requirements, as well as increasing competition for retailers. However, the increasing pressure not only causes problems but also provides new opportunities for the producers, processors, and exporters of meat, that can anticipate market changes and respond to them. Among these responses are called, in particular, expansion of sales networks, as well as increasing transparency. Analysts advise top meat producers to take into account concerns of consumers regarding animal welfare since the demand for the supply of ecological and high-quality meat increases from year to year. For manufacturers who want to sell meat in bulk in large quantities and keep their business afloat, it is a key task for this year.
China still has a vast impact on the world meat market this year. During the current year, there was a rise in the pork imports to a record high of 2.7 million tons. It is also projected to increase imports of beef and poultry (in particular, shipments of beef from the United States). At the same time, pork consumption growth in China in 2017 begins to fall by about 1% in the period up to 2020. In the years 1996-2005, the average annual consumption growth was 4.3%, 2006-2014 years - 2.8%, as demand for this type of meat in families with middle and high incomes is already satisfied.
In the United States, the increase in the output of meat is expected, in this case, remains in doubt, as far as the population is ready to increase consumption. In addition, potential problems for American producers can create a stronger dollar and instability in trade relations with Mexico and China (the US is the biggest producer and exporter of pork to China after the EU). Poultry meat in the US market will grow by 2-3% compared to 1.5% in 2016. Pork production - 2.5% in 2017 compared to 3% and beef production will increase by 3%. As a result, of the production growth in the US and South America in 2017, world beef prices are expected to decline slightly, although it will remain above the average over the past five years.
