Volatile Pork Prices Predicted for 2013

Feb 04, 2013

Rabobank Report: Higher Feed Costs Weakens Global Pork Price Expectations

Rabobank released its pork quarterly Q1, noting that while global pork prices starting off strong in 2013, it anticipated that there will be a weakening in prices in late Q1 and into Q2. The key factor for this trend is pressured coupled with slowing growth in global production levels.

The report outlines some of the key factors believed to influence pork prices for this year including – looking at the European production levels given the new animal welfare regulations, China’s demands for imports, and signs if US hog production will expand.

“Despite the higher feed input costs, the US swine breeding herd has modestly expanded and large scale farming continues to develop at a rapid pace in China, Russia and Brazil. There seems to be limited opportunity for a significant increase in pork prices, given this expansion. Chinese hog supplies appear to be sufficient, but their economy is recovering which could stimulate demand growth,” said David Nelson, Rabobank Analyst.

Overall, Rabobank predicts that global pork prices will be lower than previously forecasted largely due to higher feed costs and herd liquidation – which is happening in the U.S.

Video: Finding a Balance of Innovation and Regulation - Dr. Peter Facchini

Regulations help markets and industry exist on level playing fields, keeping consumers safe and innovation from going too far. However, incredibly strict regulations can stunt innovation and cause entire industries to wither away. Dr. Peter James Facchini brings his perspective on how existing regulations have slowed the advancement of medical developments within Canada. Given the international concern of opium poppy’s illicit potential, Health Canada must abide by this global policy. But with modern technology pushing the development of many pharmaceuticals to being grown via fermentation, is it time to reconsider the rules?

Dr. Peter James Facchini leads research into the metabolic biochemistry in opium poppy at the University of Calgary. For more than 30 years, his work has contributed to the increased availability of benzylisoquinoline alkaloid biosynthetic genes to assist in the creation of morphine for pharmaceutical use. Dr. Facchini completed his B.Sc. and Ph.D. in Biological Sciences at the University of Toronto before completing Postdoctoral Fellowships in Biochemistry at the University of Kentucky in 1992 & Université de Montréal in 1995.