Economy the U.S. pig

US pig: after years of fat coming lean years

The American University of IOWA evaluates the cost-effectiveness of pig farm in the State of IOWA for decades. This period real data are calculated and collected on monthly results. The scale is the gain or loss, taking into account a full cost accounting.

The last 10 years show clear signs of a cyclical history of profit on. The individual periods vary, depending on the extent to which the influence factors on the cost or revenue side are stronger or weaker or to cancel or reinforce.

The period of 2014 with profits per pig is striking up over $100 in individual months. The winning phase caused preceded by a epidemic PEDv lethal diarrhea disease in piglets. About 15% of the piglets were the plague victim. The result was a pronounced lack of piglets. Piglets prices rose to over $100 per 22 kg standard piglets.

However, the pork production in the United States only by 5 to 7% declined, because partial compensation was accomplished by carcass weight increasing to 5 to 6 kg per pig. With some smears the higher slaughter weights stop until the recent past.

High profits in the pig production and the pig the US pig farmers in the aftermath caused their stocks to rd.  6% to extend. The following offer increase expressed in 2015 on the proceeds, with a remarkably high growth in demand prevented that the results not clearly deteriorated into losses. Background for the growing U.S. domestic consumption were comparatively high beef prices between 5 and €6 per kg and the high employment rate in the United States. However, the export was only modestly, because of the high dollar exchange rate and the increasing competitive pressure from the EU affected the U.S. international trade.

With end of the year 2016 2015 and early losses are retracted again. Full cold storage, a seasonal small demand and a weak export sales have contributed to this development. For the remainder of the year 2016, is expected again in the barbecue season, as well as falling feed costs with rising prices. The export further suffering from the strong dollar exchange rate. High profits are not expected. Loss expectations in the House are again at the end of the year.

The United States and the EU are the largest exporters of pork with depending on a market share of over 30%.  There are two regions in a tight competition. The result is a mutual influence on the markets. Whether the EU will prevail with its twice as big potential and a weak euro exchange rate, we'll have to wait still.

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