Pig prices in exporting countries under pressure

Low pig prices in all leading exporters of pork

In all leading exporters of pork at the world level, the pig prices are end of 2015 under pressure. Each region tried with third-country exports to obtain relief for the internal market. The result is a fierce competition for the few sales areas at world level.

 In addition, the Exchange rates play a crucial role. United States and Canada with strong currencies often left in the competition, because their price demands are too high.

However, the EU and Brazil with weak currencies are easily in the advantage. Higher transport costs, for example in Asia appear but instead. The failure of import in the near Russia is everywhere noticeable, because hardly any spare imports are reached. Russia's imports fell by nearly 1 million tonnes of (2013) to 0.2 million tonnes (2015).

The EU however suffers the Russian 750,000 t unusual for her pork most. Although bought larger quantities in the EU other countries such as China, South Korea, Philippines, achieve a sufficient replacement but the quantity nor the quality of the products. For example, average export revenues for the business in China is rd. €1.40 / kg for product processed, packaged, and frosted. The majority of the exported product less valuable pieces such as paws, ears, tails, heads are etc.

A return of Russia to old imports with annual increases are unlikely. Lacking purchasing power due to the economic situation (fallen energy prices) has become weaker and enormous price decline of the Russian currency. In the meantime the Government has provided significant funding, to increase the equity production in the country. It is understandable that an opening of the border for the time being out of the question comes, not to endanger the construction by inexpensive imports.

A self-sufficiency rate of 110% and stagnierender to declining domestic demand is to be in the EU by a necessary production constraint now and in the near future.

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