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Six-year low for global pork export prices

PW ReportersBy PW ReportersMarch 8, 20162 Mins Read
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Global pork export prices finished 2015 at their lowest level for over six years, according to AHDB Pork.

The year-end average for the EU, US, Canada and Brazil, the world’s four major pigmeat exporters, was $2.38/kg (£1.67/kg), the equivalent of 40p down on prices at the end of 2014 and 70p below the level at which prices peaked in June 2014.

“Several factors combined to drive down values in the global pork market,” said AHDB Pork, “The well documented supply glut following the Russian bans in 2014 put downward pressure on EU, Canadian and US prices while the EU price has only just started to stabilise (in January 2016), in no small part due to the short lived Private Storage Aid scheme.”

The US recovery from the 2014 PEDv outbreak and currency issues also affected the global trade. Brazil, in particular, was significantly affected by the weakening of the real against the dollar, due to the “recessive” Brazilian economy.

“While this helped the volume of pork exported to a range of markets, the effect on value was very dependent on the currency involved,” said AHDB Pork, who also saw little by way of positive news in all of this for the EU.

“Depressed global prices will provide little comfort to EU producers at a time when the EU price is so low, and with export prices needing to continue staying low to compete. It is likely, therefore, that pig prices will remain under pressure, at least in the short term.”

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