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Analyst Says Prices Could Explode

by 5m Editor
24 September 2010, at 12:36pm

DENMARK - A bullish picture of Danish meat prices is painted by Palle Jacobsen, of a Danish analysis company.

He sees many producers leaving the industry as a result of high feed costs and this, in combination with low stocks of meat in cold stores will see prices 'explode'.

He believes that short-term pork prices will not increase 'because traditionally it is difficult to get higher prices'.

But next year the increases will take effect, he says. He argues that although Danish pig prices have just fallen they are still a record high for the season.

Another analyst, Karsten Flemin Market, of Danish Farming and Agriculture, is less optimistic. He does not predict higher pig prices, and says he would want to see a period of reduced production before daring to predict higher prices.

Currently production in the European Union is 2-3 per cent higher than a year ago. But in the United States there has been a decrease of 3-4 per cent.