Turbulence ahead, Danes warned

Danish pig producers are being warned of tough times ahead with prices being predicted to drop to almost the cost of production.

While 2006 has bucked the forecasts and proven to be a strong year, Karsten Flemin, from the Danish Meat Association, said: "We are expecting a fall in the pig price to around 8.44kr which is almost the cost of production."

While the industry was given similar warnings last year, a number of factors combined to result in stronger than expected pig prices for the Danes, ranging from the effects of Avian Influenza, FMD in Brazil and stable supply in Europe. "AI increased demand for pig meat and FMD in Brazil meant we doubled our exports to Russia," Flemin said. However, with Brazil expected to claw back its Russian losses, and AI impact diminishing with time, economists are not expecting anything similar in 2007 to boost prices.

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