A beast is loose 😱

swine o'clock Oct 28, 2022

💸 A terrible beast is loose in Europe, one that affects the entire world… “What manner of creature is this?”, might you ask! It’s called “inflation”.

 

  • Here’s a summary of the scenario: the Federal Reserve Bank and central banks in Europe are now selling back all the financial instruments they bought during the pandemic, which makes prices fly. Understand more about it here.

 

🤔 Let’s go straight to the point: how does this affect pork producers?

 

  • It lowers both demand and quantity demanded – every bit of pork produced will be sold or frozen, but not at previous prices. So a very sharp reduction in much of the global trade is about ready to unfold.

 

  • People will still eat pork, but will stretch those two pounds per dinner to two meals with more rice and potatoes…