Articles - Economy

Europe is facing difficulties for selling its meat: Russia restricts its importations and in the Asian markets it must compete with pig meat from the American continent.

Political decisions in the form of new laws, regulations, permitting requirements, etc. are extra-market forces which can cause market costs and revenues to swing significantly from the pathway set down by fundamental forces, like supply and demand.

In September Spain has started a downward trend spiral. The livestock supply is very high, and the maximum activity of the abattoirs cannot even absorb it.

Understanding the market dynamics of feed ingredient costs is crucial not only to manage overall costs of production but to ensure effective strategies in purchasing, margin hedging, peak line of credit acquisition and liquidity or financial risk management.

The annual pig meat production is 500,000 tons, and the amount assigned to exportation reaches a 40% of the total. The geographical characteristics of Chile provide it with unique conditions that have allowed the eradication of diseases such as PRRS.