US pork storage at lowest level since 2010

US frozen pork storage fell sharply last year, reaching its lowest level in 10 years. The decrease is the result of the corona crisis. Slaughter capacity stagnated sharply due to corona infections among staff members.

The United States Department of Agriculture (USDA) estimated pork storage in cold stores at 182.229 tons at the end of December. Compared to the end of 2019, this is a decrease of 30%. The stock was even at its lowest level since 2010.

The decline is attributed by analysts to the corona crisis. Because the slaughter capacity stagnated sharply due to the closure of slaughterhouses due to corona infections among staff, pork was brought onto the market from stock.

Bright spot
The fact that the pork stock in cold stores is so low is a ray of hope for the development of pig prices. In terms of revenue, the USDA forecasts a lean pig year. With a lower stock in cold stores, the year may start less badly than estimated. 

European Commission considers storage scheme
In the meantime, there is a surplus of pigs in Western Europe and sales opportunities have fallen sharply due to the lockdowns and the export restrictions that Germany is struggling with due to the African swine fever. The European Commission does not rule out a private storage scheme, whereby market parties (such as slaughterhouses) receive a fee to temporarily store pork in order to relieve the market.

Before the storage scheme can be introduced, however, it must be clear what the effects of intervention are. EU Agriculture Commissioner Janusz Wojciechowski emphasized that the pig sector in Europe is particularly heterogeneous. According to him, this makes taking measures complex, but he does not rule them out.

Chanti Oussoren

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets.

c.oussoren@boerenbusiness. Nl

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