The Business Times

Rising pork demand drives US prices to highest since 2014; hogs outperform petrol

Published Fri, Apr 9, 2021 · 05:50 AM

New York

LEAN hogs, one of this year's best-performing commodities, are fetching the highest prices in the US since 2014 as pork-pricing changes in the Philippines lift demand prospects.

The Philippines ended a two-month ceiling on pork prices, and the US industry is already anticipating reduced tariff rates on imports of the meat. The measures come as the South-east Asian nation battles an outbreak of the deadly African swine fever virus, which has also had a resurgence in top pork-producing China.

The Philippines is one of the fastest-growing markets for US pork, while China has become the world's biggest importer since the outbreak of swine disease in 2018. Demand for the meat is rising as businesses reopen in the US, a turnabout from last year's diminished demand when restaurants closed in the early days of the pandemic.

"You have a rebound in demand, not just in Asia but here in the US and, right now, the supply is not keeping up with it," said Altin Kalo, an analyst at Steiner Consulting Group in Manchester, New Hampshire.

Lean hog futures climbed as much as 2.3 per cent to 108 US cents a pound, the highest since July 2014. Year-to-date gains of more than 50 per cent has hogs outperforming other big gainers, including petrol and copper futures.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

The Philippines would sharply reduce import tariffs for pork, providing more access to foreign supplies, the National Pork Producers Council said Wednesday in a statement.

"With global pork supplies remaining limited this year, these reductions in import duties will help improve availability in the Philippines and provide further momentum for US exports," said US Meat Export Federation spokesman Joe Schuele. BLOOMBERG

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Consumer & Healthcare

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here