Massive decline in pig prices in large production areas Since the beginning of 2018, pig prices have fallen sharply in the world's largest production areas . In the largest production region of China, prices fell by almost 0.60 ct / kg or -24% . In the third largest country, the USA, the prices fell within a short time by approx. 30 ct / kg or also 24% back. In Russia , approx. 20 ct / kg or 11% less . Brazil pork prices slide down 30 ct / kg or 24% . Canada's already low price level goes back by 10 ct / kg .The causes of the price decline are sometimes different in the individual regions, but are due to the trade relationships between them. In China , the first deliveries from the newly constructed production facilities have led to an overstraining of the declining demand for the holidays for the New Year festival in mid-February. Further piggeries going into operation in 2018 will increase domestic supply. To what extent the unprofitable small businesses stop their production , remains open for the time being.In Russia , growing battle figures and heavy slaughter weights at the peak of up to 120 kg are adding to a demand-laden supply. With the recent increases in feed prices, however, the final weights have already dropped significantly. In the USA , at the beginning of the year 2018 approx. 3.3% more fattening pigs counted . The slaughter weights are above average. The threat posed by Russia and Mexico to impose import duties on US pork exports has pushed prices further down.For competitive reasons, Canada's pork prices close to US quotations with fairly regularity. Brazil's pork exports go to Russia by about 30%. In the other sales areas with a focus on Southeast Asia, the Brazilians are in direct competition with the North Americans . In both cases, Brazilian pork prices are under pressure to adapt. For the EU in particular the sale to China is important. Falling prices in China are slowing down Chinese imports, which amount to approx. 50% from the EU .On the other hand, China's pig prices are still higher than the EU prices. Exports of China exports are less than € 1.50 / kg for prepared, packaged and chilled cuts of less high quality. Nevertheless, there is enough fierce competition from the EU to the other export regions. There is speculation that US-led export cuts could benefit other exporting countries, such as Brazil, Canada and the EU.
