Creation of meaty giants

Vion Foods acquires  Grampian, Marfrig stalks Moypark, Smithfields merges with Campofrio. Meat/food companies are consolidating throughout Europe. Their timing could be good as finally the  pork price has started to rise and pork producers may possibly return to profit. A 7% price rise has been noted in Belgium, Germany, France and Austria. Spain is delayed in its pork price recovery due to local lorry strikes causing a build-up of stock and supply surpluses. Denmark, home to Danish Crown has yet to feel improvements.

Meanwhile China is experiencing pork shortages as domestic production struggles with feed and fuel costs. Chinas market volume is so colossal shortages will be felt by meat companies the world over. US companies are awaiting better times as demand increases will represent a strong opportunity to leverage their product in cheap US$’s versus other exporters. Could this be the moment when meat producers have their moment in the food price limelight?

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