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 Spanish pig price chart in August has been completely flat. We are expecting a bear, but not catastrophic, trend in September.
The Spanish price will still exceed €1.30/kg whilst the supply remains restricted. The battle will be held in September, and it will all depend on the foreign markets.
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.