Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   
   
   
   

Agricultural News


African Swine Fever Coupled with Trade Disputes Likely to Disrupt Global Pork Market, Says CoBank

Wed, 24 Oct 2018 11:39:58 CDT

African Swine Fever Coupled with Trade Disputes Likely to Disrupt Global Pork Market, Says CoBank China, both the top producer and consumer of pork, has been stricken with African Swine Fever in 10 provinces all while being involved in a deepening trade war with the U.S. The Chinese have taken action, by culling almost 50,000 hogs in an effort to prevent spreading the virus, a small fraction of Chinese hog production. According to a new report from CoBank’s Knowledge Exchange Division, the threat of a more widespread virus and disturbance in the world’s pork supply chain due to trade disruptions is expected to drive prices higher with potential benefits for the global protein sector.


China’s hog prices have climbed 25 percent since July and the escalating trade dispute with the U.S. has limited China’s import options. In addition to the import restrictions, CoBank estimates that more than 70 percent of China’s hog production is being affected by the larger quarantine and hog movement restrictions in China.


“African Swine Fever in China may be the event that helps bring U.S. pork supply and demand back into balance for years to come,” said Will Sawyer, lead animal protein economist with CoBank’s Knowledge Exchange Division.


In the past, when pork prices have increased, the Chinese consumer has switched to chicken as their main source of animal protein. However, since 2014, China’s poultry sector has struggled with negative publicity.


“In 2016, when hog prices climbed to all-time highs, chicken prices barely budged,” Sawyer said. “Consumer switching is always a possibility during price shocks, but with human fatalities and other food safety risks in China, we think consumers will continue to demand pork, which will be met by imports rather than domestic Chinese production.”


However, these increased imports will come at increased cost as the Chinese source pork from the European Union and Canada, said Sawyer.


“The real opportunity here is for U.S. producers is to capitalize on reduced global competition in pork,” said Sawyer. “Pork producers could potentially climb back to breakeven and maybe to positive territory next year, but it will largely depend on how the ASF story unfolds in China.”


To see a brief video synopsis of the report, click here. To read the full report, visit cobank.com.


Source - CoBank



   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • State Veterinarian Mandates Show Swine Exhibitors in Oklahoma Adopt Electronic Identification Tag  Wed, 14 Nov 2018 15:37:13 CST
  • OSU Meat Judging Team Named National Champions at 2018 International Meat Judging Contest  Wed, 14 Nov 2018 15:21:40 CST
  • Feeder Steers and Heifers Sell Steady to Weak on Wednesday at OKC West Livestock in El Reno  Wed, 14 Nov 2018 15:12:27 CST
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Wednesday, November 14, 2018  Wed, 14 Nov 2018 15:07:17 CST
  • Wednesday Market Wrap-Up with Justin Lewis  Wed, 14 Nov 2018 14:11:08 CST
  • Wednesday Afternoon Market Wrap-Up with Carson Horn  Wed, 14 Nov 2018 13:55:44 CST
  • Environmental Defense Fund, National Corn Growers Assoc Partner to Scale Conservation Holistically  Wed, 14 Nov 2018 12:05:05 CST
  • Time is Running Out as Congress is Urged to Pass a New Farm Bill with Only a Few Days Left in 2018  Wed, 14 Nov 2018 11:49:59 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

       
       
    © 2008-2018 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.