The January price index for meat is "stopped" at the level of 156.7. That remained almost unchanged relative to December adjusted index. Thus, the rise in prices for beef lamb balances the reduction in prices for lamb and a slight weakening of quotations of poultry and pork. Restoration of cattle livestock in Australia limited the beef offer from exporters and led to the rise in prices. In the case of lamb, Oceania export prices fell a third consecutive month, reflecting seasonal peak slaughter and supply of this type of meat. Global quotation pork and poultry are also reduced for three months because of brisk supply and stable moderate demand.
However, the EU internal market of pork in January was characterized by volatility. Although the average price was comparable to its level in December or slightly inferior, towards the end of the month, there has been some recovery of prices. It caused a limited supply of slaughter pigs; one of the causes which led to this was cold weather that slowed the growth of animals. However, in early February, there is a multidirectional movement of prices. For example, Germany, Belgium, and Austria did not keep the prices at current levels. In France, producers managed to consolidate and somewhat to increase prices of pork.
There was a weakening of live pigs’ prices in the state of Sonora in Mexico. Thus, the year began with a mark of 28.6 Mexican pesos per kilo of pork in live weight, and in early February the price dropped to 26.85 pesos. This fall, experts associated with weaker domestic demand, due to its seasonal fluctuations. A slight recovery of the national currency in late January, slightly improved the situation for pork producers because its depreciation observed during 2016 significantly increased the cost of feed.
In addition, during January purchase prices for slaughter pigs in China experienced more brisk increase than a month earlier. So, just two decades, the quotes added 4% in national currency and in dollar terms. This time the pork price hike in China is mainly due to the approach of the Chinese New Year.
Pork became more expensive in the United States and Canada. Under the influence of a fairly lively demand, the price of slaughter pork in these countries at the end of January reached 1.42 USD/Kg and 1.24 USD/Kg, respectively. This is 20 cents/kg more than in the first days of the year and by 11% and 15.5% respectively higher than in the same period last. Given the results of the first week of February, the upward movement of prices will continue. Thus the pork in the US gradually aligned to the price of this type of meat in certain EU countries. As a consequence of that, most manufacturers finally came out of the "red" zone of unprofitableness where were in the fall.
