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EU Pig Prices: Price Pressure Continues Throughout EU

28 November 2012
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EU - Pressure is still exerted on the pig prices throughout the EU this current week of slaughter. Starting from Germany, where the price went down by 5 cents, prices partly were also corrected clearly in the neighbouring countries.

The severest price reduction was reported from the Netherlands where the prices went down by as much as a converted 7 cents. Austria and Belgium oriented themselves towards Germany, lowering the prices by 5 cents.

The pig prices also continued their downward slide in southern Europe. The Spanish quotation was reduced by a converted 2 cents. Thus, the Spanish had to give up their top ranking among the five major pig-keeping EU member countries after a long period of time. From the Spanish point of view, the currently outstanding quantities on offer as well as the weakening demand could be taken as reasons for this. Exports towards Russia in particular no longer are as brisk as they were a few weeks ago. As is reported, some of the Spanish slaughter companies had already exploited their annual export contingents towards Moscow.

Quite contrary to this trend, the prices in Denmark went up by + 4 cents this week. Other than was observed in other EU member countries, the quantities available of pigs for slaughter could not quite cover the demand. This does fit the news that Danish Crown is considering supporting the building of new fattening facilities. Even reports about the situation on the export markets do not sound that negative in Denmark as they do in the other European countries.

Trend for the German market: The German slaughter companies certainly had reckoned with more output over the fourth quarter, during which the margins usually tend to be very well. Accordingly, the price ressure continues at the beginning of the new week of slaughter. Almost all renowned slaughter companies are only paying internal prices of 1.75 euros / kg. From the farmers’ point of view, the major slaughter companies’ internal cohesion to pay internal prices these days is quite worrying. This in particular applies in light of the price development in Denmark. Fair market prices – way from it!?At present, it is impossible to know whether or not the pressure will diminish at short notice. So the further price development is quite uncertain.

Week 41 1.876 1.810 1.826 1.865 1.889 1.902 1.897 2.190 1.961 1.817 1.940 1.671
Week 42 1.846 1.781 1.825 1.840 1.834 1.882 1.890 2.190 1.949 1.786 1.944 1.671
Week 43 1.796 1.743 1.825 1.779 1.777 1.824 1.890 2.190 1.923 1.735 1.929 1.671
Week 44 1.776 1.714 1.799 1.729 1.724 1.761 1.857 2.119 1.873 1.694 1.957 1.671
Week 45 1.776 1.714 1.758 1.729 1.701 1.782 1.828 2.057 1.837 1.694 1.956 1.671
Week 46 1.776 1.714 1.758 1.729 1.706 1.764 1.810 2.038 1.807 1.694 1.955 1.671
Week 47 1.776 1.704 1.758 1.717 1.739     2.006 1.793 1.694 1.954 1.671
Week 48 1.726 1.637 1.799 1.667 1.703     1.975 1.774 1.643 1.936 1.671
Prices in Euros (€)

Corrected Quotations 2012

1corrected quotation: The official Quotations of the different countries are corrected, so that each quotation has the same base (conditions).
base: 56 per cent lean meat; farm-gate-price; 79 per cent killing out percentage, without value-added-tax (VAT)

ThePigSite News Desk

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