EU Pig Prices: Scarce Supply, Prices Steady to Rising07 August 2012
EU - Measured in terms of demand, the quantities of mature pigs for slaughter are comparatively low throughout Europe.
In Southern Europe in particular, the slaughter weights have been reducing over the past week, thus underlining the low provisioning of the markets. Consequentially, the prices were able to go up by a converted +2 cents per kg slaughter weight.
In France, +1cent was noted, compared to the week before. In Belgium as well, the price went up by +1 cent. Another reason for the price increases in these countries is due to the reduced price gap with Germany.
On the export markets, Spanish and French companies had increasing difficulties over the past few weeks, because up to now Germany has been said to be the country to break the rise in prices and because higher prices were hardly enforceable against German companies’ bargain offers.
Just like in Germany, no current changes in prices were reported this week from Denmark, the Netherlands and Austria. The market situation is described to be balanced in Denmark, where the export business is still going well.
Austrian market experts report that in their home country the pig market is completely cleared. In Germany, the increased acquisition prices made by the slaughter companies could be forwarded via almost all parts in meat sales.
At the end of the last slaughter week, the slaughter companies’ demand has risen. According to a report published in the Wirtschaftswoche magazine, German consumers bought about seven per cent less barbecue meat this June (despite the European Football Championship) than they did during the same period last year. But now, at last, demand seems to be increasing for barbecue meat.
Trend for the German market: At the beginning of the new week of slaughter, pigs are still urgently demanded by the slaughter companies. It seems impossible to meet every demand promptly. If this trend continues, a price increase should be the logical next step.
Further ReadingYou can view the full report by clicking here.