Pork producers are trying to remain optimistic about the outlook for their industry in 2016 given the supply challenges they’ll be facing.   However, Minnesota Pork Executive Director Dave Preisler says it may be a breakeven year for the industry. He says while the summer market looks improved, by the end of the year the supply could overwhelm processing capacity and depress prices.

 

He says they’re hopeful that China export business will pick up some of the extra tonnage especially since they’ve downsized their own swine herd.   Plus they buy parts such as ears that add value to the carcass. However, Preisler says the U.S. is still fighting trade barriers that are keeping U.S. pork product out of the market.

 

However, Preisler says increasing China’s export business substantially may be a challenge with their slower economic growth and the related volatility in their equity markets such as Monday’s sell off.