Even though pork is a bargain compared to beef, sales have been slumping and it’s likely to stay that way for the rest of the year.
Last year demand for pork increased, meaning that even though prices rose, consumers bought more.
So far this year the reverse has been true as demand is decreasing, meaning even lower prices for pork is not increasing sales.
“We see persistently high retail prices limiting consumption of all proteins. Consumers continue to conserve capital by shifting everyday purchases to lower-value protein options, switching channels, and moving to smaller pack sizes,” said Christine McCracken, senior analyst for animal protein at Rabobank.
African Swine Fever has reduced pork production in China, South Korea and the Philippines so export demand remains firm.
However, if China’s pork production results in a “sizeable shortfall” it would “disrupt the global industry and drive a sharp upward correction in pork prices,” she said.
On the other hand, herd health and productivity are improving in the Unite States and Mexico and “could potentially burden the market . . . and could result in excess supply and require further industry adjustment,” she said.
Sounds like a typical economist - on the one hand, but on the other. Know any one-handed economists? If you do, are they reliably accurate?”
