Weekly Overview: How Will Trump's Presidency Affect the Meat Industry?

14 November 2016, at 6:00am

ANALYSIS - Following the surprise election of Donald Trump for US presidency, some panic trading was predicted to occur.

In the short term, the Steiner Consulting Group noted that it thinks currency shifts will have the most immediate impact. One thing to notice is the dramatic drop in the value of the peso and what that does to the ability of Mexican importers to source US red meat and poultry products.

Longer term, however, no one really knows how this will play out.

The only thing economists have to go on are statements and positions taken by the president elect Trump during the election.

Promises of heavy tariffs on imports, the erection of a physical barrier with one of the US's largest trading partners, the commitment to do away with NAFTA, no TPP, limits on free trade in order to stimulate domestic jobs and other such commitments may have a significant detrimental impact on the meat industry, said the Group.

In other news, Danish Crown is to set up a processing plant in Shanghai, China, as part of its strategy towards 2021.

Danish Crown plans to invest around DKK 300 million in a processing and retail product plant to process Danish raw material.

Chinese consumers are increasingly demanding convenience products with a high quality and high animal welfare.

"It is therefore evident that we should try to capitalise on this by our own production. Is this a chance we are taking? Yes, it is, but this is one of the chances we should take as a big company and try to see if we can get closer to the market, closer to consumers and further up in the value chain in China – rather than just being a raw material supplier," said CEO Jais Valeur.

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