Pig Sector: Profits & Tariff Concerns | [Year] Update

by Archynetys Economy Desk

The Spanish pig sector is going through a moment of bonanza thanks to the strong demand and high prices, but observes with a mixture of expectation and concern the international movements that They can alter their competitiveness, as is the case of China and the United States tariffs and the commercial agreement with Mercosur.

“The farmer is finally receiving a fair price for his effort,” the Technical Secretary of the Spanish Association of Iberian Pork (Aeceiber), Pablo Aguirre, told Efe, who warns that the uncertainty generated by commercial tensions “does not like the industry”, toUnaque clarifies that “the cured ham has been out of the Chinese tariffs.”

In that line, the president of Interporc, Manuel García, has pointed out that “every tariff is negative for the economy and for society.”

Although Spain has left “better stop” than other countries, it warns that the sector must maintain the so -called “mirror clauses” to prevent third -country products from entering without complying with the same standards of animal welfare, health and environment as the European Union (EU) requires its farmers.

As for the agreement with Mercosur, García has stressed that it is not so much a volume problem“There is about 25,000 tons of meat, which is not much”, but how its entry into Europe is regulated: “If it is concentrated in certain cuts or moments of high demand, the market can unbalance.”

Other producers share this concern, as is the case of Álvaro Aranda, farmer in Constantine (Seville), who says that “Mercosur is more afraid than tariffs, because it is an absolute unfair competition. We are required by health and environmental controls that do not meet there. “

Meanwhile, domestic demand continues to pull the market. For Florencio Torres, president of the Lonja de Extremadura, the great challenge is not in current prices, but in the capacity of small industry.

“This year traditional industrialists will sacrifice less because the supply of pigs is expensive and scarce. We are in a cycle end and we will have to reinvent ourselves, “he said.

In summary, the Iberian enjoys a solid and prestigious sales scenario, but with an uncertain horizon conditioned by international negotiations and the pressure of great competitors such as Brazil.

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