Global pork prices remain at low levels
Global pork export prices have been under continued pressure throughout 2015.
Prices dropped to the lowest point of the year in April at $2.51/kg, before picking up slightly during the months of May and June, only to continue the downward trend in the third quarter of the year. The average price, which is based on export prices from the four major exporters (the EU, US, Canada and Brazil), fell to $2.56/kg in August and again the following month to stand at $2.55/kg in September. In line with the rest of the monthly prices from 2015, the latest quote remains well below the corresponding time period in 2014, currently back by $0.71/kg.
The low prices which have been recorded in 2015 followed on from a weaker second half of 2014, when prices peaked in the summer and then fell towards the end of the year. Outbreaks of disease drove the spike in prices but, as countries continued their recovery and production moved up, especially in the United States, additional pressure was placed on prices. Exports also increased, especially from the EU, with the opening of new markets into Asia offsetting the loss of the Russian market. Unit prices for Brazilian pork rose during the second quarter of 2015, before falling back again in September and October. The continued deprecation of the Brazilian Real and the ongoing access into the Russian market led to the increase in the volume of pork exported compared to 2014.
The latest data released for October register a further fall in prices for the US, Brazil and Canada but figures for the EU are not yet published. However, due to the links between these markets and the weak EU pig market, it is expected that this trend will be apparent there as well, putting further pressure on the average global price.