Global pork prices return to normal

Global pork prices rose to record highs in mid -2014 and returned to more normal levels by the end of the year.

The surge in prices is the impact of porcine epidemic diarrhea virus on global pork supply, which has affected major pork exporting countries (the United States) and some key importing countries (Japan, South Korea and Mexico, etc.).

This brought the average export price of pork in the summer (based on data from the four major global exporters-the European Union, the United States, Canada and Brazil) to US $3.50/kg, 13% higher than the previous record of US $3.12/kg. However, as the epidemic of porcine epidemic diarrhea virus subsided and signs of increased pork production in 2015 appeared, pork prices fell again. The average value of exports fell to $2.95 in December 2014, in line with the levels of 2012 and 2013.

Prices in the EU have been largely unaffected by price increases elsewhere, mainly because of the import ban imposed by Russia, so pork in the EU was the cheapest in 2014, contrary to its usual level. After Canada also entered Russia's embargo list in August, its pork prices also fell sharply, and its export situation was close to that of EU exporters. At the end of 2014, due to the devaluation of the ruble, Russian importers were reluctant to use the US dollar to buy large quantities of pork.

As a result, U.S. pork prices were the most expensive among major exporters in December. But prices in the United States fell further to their lowest level in five years in the new year of 2015, which finally brought the United States and other exporting countries to the same level. Coupled with the strong US dollar against the euro, Canadian dollar, Brazilian real, etc., this means that the global average price in US dollars will fall further in early 2015, and may reach the lowest level in more than four years.

China Livestock Network2015-3-12http://www.chinafarming.com/shengzhu/2015/3/12/20153129345449568.html

editor: lixia