US production profitable next year
A return to profitability for American pork production in 2009 is predicted by a new Rabobank report.
A return to profitability for American pork production in 2009 is predicted by a new Rabobank report. US Pork says breakeven point for costs and prices in USA will come in May 2009. The report's forecast is based on futures prices at the end of June 2008 and assumes non-feed costs remain constant.
It emphasises the continuing strength of demand for pork nationally, with a consumer index calculated by the University of Missouri showing a further rise of 0.2% in the first quarter of 2008 after increasing 2.5% in 2007. Pork's competitive pricing at the retail level is expected to continue through the summer months. Pork prices will be bolstered by higher chicken prices and will be sustained in the long term by constraints on cattle availability for beef. Also, pork is less affected than other meats by a downturn in the foodservice sector, which is suffering as consumers reduce their expenditure on meals outside the home.