Are Pork Importing Countries Stockpiling ahead of the Full Impact of Trump’s Trade Policies?
There is a fear that President Trump’s public face to Mexico and China may result in lower export sales for the coming year.
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There is a fear that President Trump’s public face to Mexico and China may result in lower export sales for the coming year.
Since late January until today, the price at Mercolleida has regained €0.066. We could say that the Spanish price is riding a powerful diesel engine that is propelling it upwards inexorably.
The author analyzes the loss-making situation that is engulfing the US pig industry and links its future development to globalisation, which progress seems to be slowing down...
The USA and Canada persist in having rock bottom prices: €0.91/kg carcass, this is, 40% lower than the European prices.
The heat and the decrease in the supply in Germany have supported the Spanish pig price in September. Europe will only be able to go on with its prices if it can absorb its production and the exports to Asia keep on.
Don’t be surprised over the next decade if another one or two of the large US pork production/processing chains changes hands or gains significant new partners from another country.
The success of the Brexit movement to force the exit of UK from the European Union demonstrates the limits of globalism, which for many has become a kind of euphoric synonym for innovation, increased efficiency and low cost
The exports to Asia have drained the stocks and have made all the European prices grow.
All points towards the rise in prices keeping a good pace in the first forthnight of June.
The bearish indicators still hang heavy over the industry and some have actually increased.
There is a total crisis situation in all Europe.
In order to dream of better prices we must find a bottom from where to rebound. We are very probably there, although Spanish market is, right now, heavier than the German one.
When global supplies of pork are large, as they are now, the name of the game for major production areas is growing net exports.
The only prospect for growth in both the EU and the US is increasing net export sales. We are at an interesting cross-roads about which pork producing nation or group of nations will capture that opportunity.
We can assure Pope Francis that neither of the two big regional trade agreements will result in “unfettered capitalism” but the one between the US and EU could result in the US having more than two kinds of cheese, (currently yellow and white)
Although the European exports have behaved well so far this year (the Russian embargo has been compensated), this is not enough: the weather has not favoured the BBQs in Germany and it is still too early for the summer pork consumption in the south European coasts.