Meat Prices to Stay Strong in 2012

In recent months exports have been driving pig and pig meat prices up and according to analysis in the Whole Hog there does not appear to be any sign of prices weakening.

Just prior to the Christmas and New Year holiday period, the march upward for prices was seen to be continuing, even including seasonal changes.

In the US, the market analysts Steve Meyer and Len Steiner predict that the weakness of the US dollar and the free trade agreements that have just been signed with South Korea, Colombia and Panama will help to maintain the surge in exports in beef and pig meat that has been seen throughout 2011.

Even the latest figures from Brazil have shown a surge in the value of pig meat exports, despite the fact that volumes have only marginally increased.

The latest figures from ABIPECS show that Brazil exported 43,039 tonnes of pork in November, which was marginally up on the same month last year. The average price per ton in US dollars - $3,035 - was 13.4 per cent higher than a year ago.

The value of export sales in November was US$130.6 million, almost 13.5 per cent more than in November 2010.

For the year-to-date, the total volume of pork exported was 479,487 tonnes, down five per cent compared to a year ago. The value of those exports, however, was 6.6 per cent higher at almost $1.331 billion. The average price of pig meat over the year to date was $2,776 per tonne, up 12.2 per cent from a year ago.

However, despite these strong and favourable markets, this last week has seen prices in the EU weaken.

On almost all European markets the quotations went down considerably at the turn of the year this week.

Germany led the way with an 8 Euro cent drop in quotation prices, while the Netherlands, Belgium and Austria reported a 6 to 7 Euro cent drop. Italy recorded a 5 Euro cent drop.

Denmark that reported a 5 Euro cent drop last week recorded another drop of 3 Euro cents this week.

This could be a temporary holiday blip and future currency weakness and strong export demand in China and South East Asia will start to see higher prices again.

Meanwhile Russia has announced a cut in its pig and poultry meat Tariff Rate Quotas for 2012, while Kazakhstan has seen a rise in the amount of beef and pork it will let in and Belarus has maintained its quotas.