High-flying pork prices come back down to earth, report suggests
High-flying pork prices come back down to earth, report suggests
According to the latest Rabobank Pork Quarterly report, the global pork industry has been searching for stability during the first quarter of 2015, with strong supply growth and relatively weak demand driving the market.
Pork prices are sharply lower as robust global supply growth, driven by the US, Russia and Brazil, has outpaced rather subdued demand, dragging producer profitability into negative territory.
In the EU, prices will follow seasonal developments, but will remain lower than the historical average and below break-even level.
Rabobank animal protein analyst Albert Vernooij said: “The increasing competition in the global export market will result in continuous price and margin pressure in most countries around the globe. Therefore, after the buoyant – at least price-wise – last couple of years, the global pork industry is slowly moving towards the bottom of the cycle.”
