Uncertainty in global markets could present opportunities
A slowdown in growth in China, weak commodity prices, low bond yields, weak global trade and a fall in the oil price have combined to create uncertainty in global financial markets and increase volatility, with implications for the pork market.
Although worrying at first sight, the current economic uncertainty could present opportunities for the UK pig industry. Though China’s growth is slowing, it is moving towards a more consumer-led market with an appetite for imported products. Falling commodity prices have translated into decreased costs of production, helping to soften the blow of falling pig prices. The UK’s impending EU referendum has compounded uncertainty on the markets, weakening the pound against the euro and the US dollar, thereby making UK pork more competitive both domestically and abroad.
To read more about how the current global economic situation is impacting on the pig market, click here.