Greeks have rioted in fury and Germans have voted in outrage, but as the euro slumps, Dutch and Danish farmers are enjoying an unexpected edge in premium export markets, hog market analysts say.”They’re more competitive in overseas markets,” said Kevin Grier of the George Morris Centre.The euro, the currency of most members of the European Union and the currency to which the Danish krone is pegged, has slumped in recent weeks against the Canadian and U.S. dollars.That makes pork from European hog giants like the Netherlands and Denmark seem cheaper to buyers from countries with stronger currencies like those in Asia.”There’s no doubt European pork exporters are in a much stronger position than just a few months ago because of the drop in their currency,” said Ron Plain of the University of Missouri. “It makes European pork look cheap.”The slump in the euro follows the eruption of the Greek debt crisis and the fear that Greece’s problems will soon be shared by Portugal, Ireland, Italy and Spain. Spain’s government debt was downgraded by a ratings agency May 28 after markets closed.Germany exacerbated the situation, in most analysts’ minds, by unilaterally proposing financial controls, undermining confidence that the EU could come together to deal with the crisis.The euro’s value relative to the U.S. dollar has slumped since mid-April by almost 10 percent to about $1.23 US.In the same period against the Canadian dollar, it has fallen about five percent to $1.30 Cdn.That means that even if euro-denominated pork prices and loonie-denominated prices stayed equal, European prices to an Asian buyer would appear to have fallen about five percent compared to the Canadian price.With American pork, it would be a 10 percent price advantage for the European meat.Neither Plain nor Grier had statistical evidence that the euro slump is giving more sales to Dutch or Danish pork marketers, but both said they are hearing rumours of currency-assisted sales and wouldn’t be surprised to see them show up in the sales stats.
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