US pigmeat market - high profits despite rising production - For the first time The 2017 year brought the US pig farms despite an increase in the production of pig meat of approx. 3.6% favorable summer rates . The revenues converted with a weakening dollar ranged to the order of € 1.45 / kg. The US pig farmers will have high returns certified.The agricultural university IOWA calculates average profits in the first half of the year from 20 to 40 dollars per fattening pig . The main reasons for the favorable performance are once the high domestic demand due to a high employment rate and income development And a booming export with a focus on Mexico. For the second half of the year 2017 , seasonal production is increasing, while the demand for the grilling season subsides. This means that falling prices are pre-programmed. The estimates of the US Department of Agriculture (USDA) are based on exchange rates of € 1.10 / kg. The lowest point is to be achieved in the fourth quarter of 2017. For the first half of 2018 , production growth is expected to be on the order of 3.45% . Nevertheless, pork prices from 1.29 to 1.31 € / kg are expected for the first half of 20188. The decisive justification for persistently good average pig prices despite rising production is justified by the increasing export .The USDA forecasts a 15% export increase of 2.7 million tonnes Out of 2.35 million t in 2016. In addition to Mexico, the Asian market is increasingly to be served. However, the recent trade agreement between the EU and Japan will affect US exports to the Japanese market, but will only take effect in a somewhat longer-term perspective with the gradual dismantling of tariffs. The most recent price development in the USA indicates that the price level has already been exceeded this year.The development of profits will depend on the price development of the feed in the near future. Weaker harvest results indicate slight upturns. The time above average high profits will then be over.
