Russian U.S. Poultry Ban May Pressure Pork Prices
By Pork news source
| Thursday, February 04, 2010
Russia’s ban on U.S.poultry may have fallout on pork prices here in the U.S., say livestock analysts Steve Meyer and Len Steiner in the Daily Livestock Report. Pork loins are most vulnerable since they compete directly with chicken breast.
The analysts say that U.S. poultry supplies are backing up due to the Russian ban. Russian authorities say the ban has been set in place due to U.S. poultry processing practices which include chlorine treatment.
The back-up of U.S. poultry supplies will likely strain U.S. domestic pork prices. "If chicken products back up and overall chicken prices plummet, we would expect a wave of chicken features. This would make pork loin prices less competitive at the retail level," Altin Kalo, a commodity analyst with Steiner Consulting, told Meatingplace.
"Even at current levels, pork loins still present value for retailers but that equation could change should we see a collapse in the broiler market," Meyer and Steiner said.
Source: Meatingplace.com
