U.S. Pork Prices Hit Multi-Year Low

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U.S. Pork Prices Hit Multi-Year Low

MINTEC, 10 Sept 2018

Pork prices in the U.S. have fallen sharply since June, with August prices 40% lower month-over-month, which shows that pork prices are falling at a more significant rate than the historical average.

Current prices are at a multi-year low why are prices falling faster than expected?

First, pork production is currently higher than last year, with low feed costs stimulating production. Additionally, the introduction of three new packing plants in Minnesota, Iowa and Michigan in late 2017 meant herds grew to meet the new packing capacity.

Along with increasing pork volumes in the U.S. market, rising supplies of beef and poultry mean that there are vaster meat supplies to compete for consumer spending with, eventually weighing down on pork prices.

But perhaps most significant, retaliatory tariffs from China on U.S. pork are driving down prices. The export market is a substantial destination for U.S. pork. In particular, China is a top consumer of U.S. pork, this retaliatory policy has hampered U.S. export growth further.

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Some factors could affect the demand for and supply of pork in the U.S.

Draw THREE separate demand-and-supply diagrams for each of the factors mentioned in the above article, and show their respective impacts on the market price and quantity of pork in the U.S. State clearly which factors or events are associated with the changes in demand or supply in each of your three diagrams. Briefly explain your answer.

*****Microeconomics******Please clearly answer the question with detailed steps*******I just started to learn microeconomics***please assist me, thank you