Dennis DiPietre is increasingly convinced that 2019 is setting up to be the year of the great pork price mirage.
Ending the year with a price similar to that of the cost price and with a more than significant growth in production can only be considered as excellent.
How is the increase in global meat production, low-cost coarse grains and ASF going to affect pig production?
The almost mimetic similarity between the Spanish price curve in 2015 and 2018 ends here and now. We think that it is completely impossible that the decrease in price reaches €0.95, like then.
There is no doubt if the disease is discovered in a major piglet or pork producing/exporting country such as Denmark, Germany, Spain or the USA, the mortality it causes would be only the beginning of the woes.
The appearance of ASF in Belgium has entailed a real blow for the EU pig sector.
Right now it all depends on the evolution of the situation in China.
As a producer, aligning with a packer-processor that is exhibiting the characteristics of a long-term successful and resilient player with access to the global market is critical for success regardless of how efficient you have become as a producer.