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Wednesday, July 25, 2012

Pork Prices Increasing!

Increased Soybean Costs Increase Pork Production Prices!

While pork has been an economical meat for many in recent years,however an increase in soybean costs may soon be reflected in pork prices,as well.
John Bancroft,OMAFRA sent outh the following explanation in the daily Marketview eNews.:
In a grower-finisher ration for pigs for each $10 change in the soybean meal price it changes the feed cost per pig approximately 50 cents depending on the level of ingredients. Since the end of March, soybean meal has gone from $450/tonne to $650/tonne which means the cost to grow and finish a pig has increased $10 per pig from soybean meal alone. The Graph below Compares weekly average soybean meal prices in 2012 (red bar) to 2011 (blue bar) and the 5 year average (black line).

Image graph comparing soybean and projected pork prices

About OMAFRA Marketview: OMAFRA Marketview Written by John Bancroft, Market Strategies Program Lead,Ontario Ministry of Agriculture,Food and Rural Affairs is published view email daily.Disclaimer: This commentary is provided for information only and is not intended as advice.

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