The global pigmeat sector is heading for further “turbulence” in 2015 according to a new analysis by the Dutch-based Rabobank.
Citing the possible re-emergence of PEDv, developments regarding African swine fever (ASF), the Russian ban and exchange rate developments across the globe, Rabobank’s animal protein analyst, Albert Vernooij, forecasts a “further cooling of markets and resulting price pressure in Q1 2015″.
“In the US and Mexico, the size of recovery after PEDv will dictate local markets with recovering production and further declining prices,” he said. “Especially in the US, the increased price competitiveness will be partly offset by the strengthening US dollar. However, with declining feed costs the outlook for producer profitability remains positive.
“EU prospects remain weak for Q1 2015, with continuing pressured consumption. The only positive signs are the drop of the value of the euro and the resuming negotiations of Russia with individual EU countries to partly reopen the market, both of which would support exports.”