Seriously though this is good news for us bacon lovers.
Does anyone else like bacon?
#8 | Posted by oneironaut
Likely to send the price of bacon up.
I am not familiar with the economics of pigs, but I do know that Americans eat a lot of bacon. So I would not be surprised if we were mostly keeping the bellies, and exporting the other parts of the hog. If that is the case, the prices of what we do export would drop in the USA due to oversupply (especially things like hocks, knuckles, tails, ears, tongue, head... which Americans probably don't eat) but the price of the things we generally keep will rise to make up for the reduced profit they are making on the other parts. In the short term it may fall just because of temporary oversupply of the bellies we do send, but in the long term we would just produce less hogs because they are less profitable, which means a reduced supply of bacon in the US. So you can look forward to higher prices.
I know that chicken feet exported to other countries "subsidizes" the price of chicken in the US. That when chicken processors started selling them for a profit over seas it allowed the price if chicken to go down.
Seriously though this is good news for us bacon lovers.
Does anyone else like bacon?
#8 | Posted by oneironaut
Likely to send the price of bacon up.
I am not familiar with the economics of pigs, but I do know that Americans eat a lot of bacon. So I would not be surprised if we were mostly keeping the bellies, and exporting the other parts of the hog. If that is the case, the prices of what we do export would drop in the USA due to oversupply (especially things like hocks, knuckles, tails, ears, tongue, head... which Americans probably don't eat) but the price of the things we generally keep will rise to make up for the reduced profit they are making on the other parts. In the short term it may fall just because of temporary oversupply of the bellies we do send, but in the long term we would just produce less hogs because they are less profitable, which means a reduced supply of bacon in the US. So you can look forward to higher prices.
I know that chicken feet exported to other countries "subsidizes" the price of chicken in the US. That when chicken processors started selling them for a profit over seas it allowed the price if chicken to go down.