In addition to what’s ahead for the hog industry, Dave Bauer, market analyst for Provimi, takes a look back over the past couple of years. It has been a time when the world's largest producer and consumer of pork lost over half of its swine herd to a novel animal disease and when global trade flows were disrupted as two of the world's largest economies battled for high ground in a high stakes trade war. On top of it all came a global pandemic, challenging normalcy in all aspects of our lives.
The fallout from just one of these events would be enough to disrupt the global economy for months or even years, but we've taken the impact from all of it full on. Bauer talks about why and how we will come out on the other side stronger than we went in.
As Bauer points out, although it's not easy to look past all the negatives, there are positives happening. Like through all this, China has increased its 2020 year-to-date combined imports of U.S. pork muscle cuts and pork variety meats by 327% over last year. The top 10 destinations for pork and pork variety meat exports have increased by 44% over last year and total pork exports to all destinations have increased by 38% in the first six months of the year. This type of demand is testament that North American pork remains the safest and highest quality in the world.
Still, even with these great trade numbers, the industry has been thrown into a tailspin and profitability. Bauer talks about why that is and what can be expected in the days ahead.
These are uncertain times and it will pay dividends to be well-prepared. If you have questions on this week’s recap or want to discuss something not covered, feel free to ASK DAVE at David_Bauer@cargill.com. Plan today for tomorrow’s success.