FCC Ag Economics helps you make sense of these top economic trends and issues likely to affect your operation in 2020:
African Swine Fever’s disruption of livestock and meat markets
- Trade tensions’ influence on agri-food markets
- Robust global and domestic red meat demand
- U.S. growth in beef and pork production
- Global economic impact of coronavirus
Profitability for the red meat sector is expected to be positive in 2020 due to robust export demand. The decline in global meat protein supplies caused by African Swine Fever (ASF) remains a story to watch in 2020. The U.S. and China agreed to a phase one deal that could raise North American prices. But the implementation of the agreement remains vague. The supply response of U.S. livestock producers will also determine livestock prices. In short, the volatile environment of 2019 is expected to extend throughout 2020.
Futures markets suggest prices for most Canadian cattle and hogs will remain around their five-year average (Table 1), but higher than the 2019 average.
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