US Herd Data Suggests Firm Market (July 2010)

By Chris Harris, Senior Editor, ThePigSite. Our snapshot of the ongoing global pig industry trends as reported in July 2010 Whole Hog Brief. To read the full detailed analysis including all the commentary and graphical data, subscribe to the publication.
calendar icon 8 July 2010
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The US hogs and pigs inventory for June shows a fall in the breeding herd, writes the Whole Hog.

It reports that the total for all hogs and pigs in the US was 64.4 million - a drop of four per cent on 2009.

The breeding herd was down by three per cent to 5.79 million.

The Whole Hog reports that the FAO forecasts are for rises in global pig production and trade.

It says that there will be a rise in global pig meat production of two per cent and it adds that it is making a brave prediction that there will be a stable animal health situation, encouraging worldwide production to rise to 108 million tonnes.

The Whole Hog's price cycle has warned that the industry is not out of he woods yet.

It says that the changes in the global economy should make the industry cautious about events to come.

While herd changes and prices used to drive the price cycle, now domestic demand and international trade and farmers' response to tight credit supplies dominated the scene.

Polish Herd Shows Sustained Recovery

Figures from the Polish Statistical Office show that the Polish breeding herd is up by 2.4 per cent to 1.38 million sows.

However, the Whole Hog says that the increase in the breeding herd is surprising because of the weak prices for Polish pigs paid at the end of 2009.

The Whole Hog also reports that the Polish trade gap is narrowing, although imports from Germany, Denmark and Spain dominate the picture.

In the Euro-zone the average pig prices of €150.6 per 100kg has dropped by 0.5 per cent compared to the same month last year. The Spanish and German prices were above average and the Danish prices have started to show an increase - up by 7.1 per cent.

Canadian Exports Maintain Impetus

Canadian pig meat exports for the first three months of the year show an increase of 2.9 per cent on 2009, despite declines in some markets.

The Whole Hog reports that the major markets of Japan, Russia, Hong Kong and the Philippines are stable.

US exports that have been expected to soar have declined by 1.5 per cent, the Whole Hog says.

Year to date figures show a fall of 3.6 per cent, but this is better than the 8 per cent annual fall seen in January.

Australian Pork Trade Gap Widens

Pig meat imports to Australia rose sharply in April - up by 49 per cent compared to the same month in 2009.

At the same time, the Whole Hog shows that trade in pig meat was down by 10.1 per cent in volume and 21.9 per cent in value.

US exports of pig meat to Japan fell sharply in the first quarter of the year and Japan's total imports fell by 5.8 per cent.

The Whole Hog reports that the South Korean market is holding steady although there are changes in the source of much of Korea's imports.

The USA and Europe are losing market share while Canada and Chile are gaining.

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