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Low US Pig Price Could Trump EU Competitiveness

11 November 2016, at 12:00am

GLOBAL - Cheap US pork could limit the competitiveness of EU and UK pig meat on the global marketplace in the coming months.

Ultimately, this could begin to put pressure on the currently buoyant domestic pig prices. Nearby US lean hog futures prices, which tend to reflect the current US physical deadweight prices, have fallen dramatically in recent months.

An unexpectedly large surge in pig meat production is responsible for driving down the US lean hog futures price.

Increased competition for market share could mean hefty price cuts may be required for EU pork to remain competitive in 2017, with a possible knock-on effect on EU pig prices. Price declines could be felt in the UK too, though some of this may be absorbed by the weakness of sterling.

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The impact of mycotoxins — through losses in commodity quality and livestock health — exceeds $1.4 billion in the United States alone, according to the Council for Agricultural Science and Technology. This guide includes:

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