Articles - Economy

The current situation in China has many similarities to the old-time hog cycle liquidation phase.

Guillem Burset foresees a very profitable 2019, but not for all the actors in the Spanish pig sector.

The relationship between the farmer and the abattoir, daily and passionate most of the time, ends up creating a bond. Its quality will, undoubtedly, be put to the test in Spain.

Pork supply, pork consumption and purchasing power in China, US and China trade war and globalism are some of the balls in play and many more are to come.

Spain is the leading supplier of pork for France, with more than 315,000 tonnes per year.

The cornerstone of the Spanish pig sector is the extreme efficiency of its abattoirs and cutting rooms.

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.

In Iberia, pig prices have reached this year’s peak. Now, prices can only drop… The evolution of prices is very similar to that in 2015.

7% drop in belly price in a single day is signaling the end of the summer seasonal prices.

Which of the two views is more appropriate for understanding the ins and outs of the global pig market?

There was a time when pig price was determined by seasonal patterns and total production… Now the belly price is driving the carcass price in the United States.

Every week a new price is set that reflects a momentary and unstable but necessary and essential balance.

Being a high performing farm is not a sufficient condition to future success.

Europe has a surplus and needs to export. The USA has increased its production and needs to export. The Russian market is closed for Brazil, and Brazil needs to export…

The impact of Chinese tariffs on US pork, the pork exports picture, feed costs forecast and more...

Let’s hope that spring makes consumption grow. The foreign markets hesitate, and it will not be easy to sell the European surpluses.

Total forecasted average profitability for the year has eroded some, from about $25/head to around $12/head in the US.