The Office International des Epizooties reported as of March 20 there were three outbreaks of the disease in Taiwan involving 1,570 cases and 615 deaths. The disease was found on twenty farms throughout Taiwan. The embargo may offer a tremendous opportunity for growt h in U.S. pork exports, but the burning question for most of the U.S. pork industry is how the news will impact prices. Because marketing margins for pork in February were near record highs, some part or all of the 1997 increase from 1996 would likely be bid into hog prices. The impact to the U.S. is astronomical.
Someone needs to make up for that.
Perhaps the more important question is whether the U.S. can meet the increased demand greater market access to Japan may offer. The Annual Hogs and Pigs report from the USDA, which will be released Thursday, may tell. If the pigs go to Manitoba they won't be eating U.S. corn, they will be eating barley. We need to think about that. U.S. producers need to recognize the potential that exists and realize the export market can serve them well.