October 30, 2007

Pork prices falling worldwide

Worldwide pig meat prices have continued to fall, with EU mainland pigmeat producer quotes lower by 16 percent over the past 3 months, according to Farmers Weekly Interactive.

Meanwhile, US pork prices are at their lowest levels since April 2006, while pig producers in South America and Australia are also facing falling returns.

The EU is introducing Aid to Private Storage for 100,000 tonnes of pigmeat this week (29 October). However, this may do little more than stabilise the market.

To ease financial pressures of UK pig producers, the British Pig Executive (BPEX) is considering a proposal to suspend the pig levy for a three month period.

At the same time, BPEX is investing GBP 500,000 (US$1.03 million) in a promotion campaign to improve retail prices.

The Canadian pig industry is struggling with oversupply, the strong Canadian dollar, and higher feed prices.

Until the feed price and pigmeat value balance is restored, the pig industry is expecting tough times worldwide.