Global prices stabilise as trade booms
Global pork export prices have been relatively stable over recent months, albeit at a lower level than for many years.
Analysis of figures from the four leading global exporters shows the average price during the first quarter of this year was just over $2.30 per kg, with similar levels in each of the three months. This was slightly lower than the price at the end of 2015 and around 35 cents down on the first quarter of last year. The price fall since late 2015 is largely due to a sharp reduction in the dollar price of Brazilian pork exports due to the depreciation of the Brazilian real. Prices from the other three exporters, the EU, US and Canada have been largely stable since November.
While the price level is has levelled, the volume of pork being traded has boomed. The amount shipped by the four main exporters during January to March 2016 was up by almost a quarter from the same period last year. The growth began in the second half of last year but has accelerated significantly since the New Year. March exports topped 475,000 tonnes, which is the highest monthly total on record. The surge is largely due to the strength of demand from China, whose imports during the period almost doubled on the year. However, with Chinese imports typically lower priced ($1.85/kg in Q1 2016, little changed from a year earlier), its increased share has contributed to the lower global average price.
Stephen Howarth, Market Specialist Manager
Stephen.firstname.lastname@example.org, 024 7647 8856