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 think that in October the price will still fall in Spain. A correction for the alignment with our neighbours is prevailing.
US pork industry is enjoying the lowest feed costs in quite some time. A significant number of new hogs to be raised in the U.S. is expected. Will the production arrive ahead of the new slaughter capacity?
The Spanish price can only fall, and it will inevitably drop week after week in September.
Pig farming in Ukraine is developing lively. The market deficit lowers the entry barriers that are almost absent.
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)
The heat has brought about a drop by more than 2 kg/carcass in July. This has not caused an increase in the price, as the Spanish price is the highest in Europe, and pork price is very low.
The harsh reality is that the outlook is bleak in all Europe.