Spain and European Hog Markets04 June 2012
EU - Beginning spring and the summer is the best price period in the Spanish Market, writes Javier Santamartina, Sales and Consultant for Genesus Spain, Portugal and Italy.
Last year was a stable year in the price of the pork, with 20 weeks with the same price. This year there is a bullish market in the rest of Europe with a decrease of the weight below 105 kg. It seems that hog supply is unable to satisfy the demand t. In the economic current situation with high need of cash by producers they do not wait for the hogs to get heavier while the packers want to support the volume of high slaughter to dilute the fixed costs.
|Genesus Global Market Report
Prices for the week of May 13, 2012
(Liveweight a lb)
|USA (Iowa-Minnesota)||83.03¢ USD/lb carcass||61.44¢|
|Canada (Ontario)||1.57¢ CAD/kg carcass||55.73¢|
|Mexico (DF)||18.70 MXN/kg liveweight||60.79¢|
|Brazil (South Region)||2.02 BRL/kg liveweight||46.27¢|
|Russia||95 RUB/kg liveweight||$1.34|
|China||13.38 RMB/kg liveweight||95.69¢|
|Spain||1.33 EUR/kg liveweight||76.64¢|
According to the forecasts of Mercolleida's market the key in the next weeks is to see if the price rises will lower the volume of demand. Though market volume will be lower, price rises on the European market with the exception of Italy and Germany will be increased by consumption produced in the good time and increase of the number of BBQ's.
Spanish Market feeling about International market (Mercolleida source):
In the international side, which ultimately also determines the general European situation the idea is that China matters even though China prices are lower than last year, whereas Korea continues strong and that the extension of imports without duty and the rebuilding of Korea national herd is still underway
Another question is the parity Euro dollar 1 € approaches now 1,25 $ with which the competitiveness of the European meat wins opposite to the USA. Unique this parity harms the costs. In Europe there is foreseen that the problem of the meat in Europe will be the competition with American countries the USA and Brazil principally, being understood that the competition of the meat already is not both between companies and between countries. Though this global market ends in competition between companies on the local market investment to adapt the farms to welfare rules.
Sows farms must be adapted at the end of 2013 to the European regulation of Well-being. To practical effects the major implication is for the buildings of sows. The pregnant sows after 28 days must be lodged in group with a surface free for sow of 2,25 m2 of solid soil or make concrete slat with major solid / solid rate do that the current slat. The solutions are great, feeding station, free access stall or cut the gestation stall and add surface to fulfill the norm. This supposes moderate investments and some producers are not in disposition to do it and they were closing or they will transform his developments into finishing. In general terms it is calculated a reduction of breeding animals between 5 and 10 per cent is expected as the new rules are extended.
In summary amazing times whit good prices season and need to take some decisions to adapt farms to welfare and depending the on more and more global market.
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