Pig imports in China to boost North American, European and Brazilian markets
2018 is gone and the global pig industry has experienced some heavy bumps due to trade wars and biosecurity issues, as Jim Long, President and CEO of Genesus Inc, is mentioning in one of his latest reports.
"2018 was a year in which hog producers in much of the world didn’t make much money. In USA-Canada market hogs sold for too many weeks under the cost of production. China had low prices at the first of the year, which were below the cost of production and then the African Swine Fever break. European markets were on either side of breakeven. Brazil was in much the same predicament.
Countries that were profitable include Mexico, South Korea, Russia, Philippines and Japan. Being a hog producer in these countries was more than okay", says Mr Long.
For now, the North American market is making a comeback with lean hog prices for 2019 on the Chicago Futures indicating the average profit in the $20 per head range. This situation could turn out to be even better for pig producers around the world as African Swine Fever implications in China are affecting production in the country. "Pigs are being eliminated due to ASF itself plus implications of extremely low markets in some regions. We expect ASF in China will lead to more imports and this will boost North American, European, and Brazil markets by mid-2019", added Jim Long.
US Trade Representative Robert Lighthizer and U.S. Secretary of Agriculture Sonny Perdue announce...