ThePigSite.com - news, features, articles and disease information for the swine industry

News

Pork Commentary: EuroTier Report

18 November 2014
Jim Long on ThePigSite

Jim Long is President &
CEO of Genesus Genetics.

GERMANY - Last week we attended EuroTier in Hannover Germany, writes Jim Long President – CEO Genesus Inc.

Our report:

  • Euro Tier is held every two years in Hannover, at their giant Exhibition Center, which has over 20 buildings of massive size. It is the largest livestock and poultry show we have ever attended.

  • There were hundreds of exhibitors. There were several exhibits that were very large, especially some swine equipment companies. Some companies we expect spent well over a million dollars for their site participation and set up. There were impressive imaginative exhibits, there appears to be an arms race in the swine equipment business for bigger and fancier equipment exhibits. Big Dutchman has set the bar for all others to chase.

  • The Euro Tier swine area had visitors from Europe, Russia, and China. There were very few visitors from North and South America.

  • European Swine producers from what we learned are losing money primarily due to the loss of the Russian market. A repercussion from the Ukraine crisis and banning of Russia importing pork from the European Union.

  • The range in swine production losses were from 4 – 20 euros per head = $5 - $28 USD. Some of the hardest hit are feeder pig producers in the Netherlands and Denmark who are selling to finishers mainly in Germany.

  • We were told some farms were depopulating due to the financial crisis with some going into bankruptcy.

  • There appears to be little new sow barn construction in the European Union.

  • On the other hand, Russia seems to be ramping up for sow herd expansion. Russian pork import controls have made hogs very profitable – well over $100 per head. Some existing Russian swine companies are planning on large expansions. We met with companies at EuroTier that are planning on about 300,000 more sows in the next couple of years. One limiting factor could be the recent rapid devaluation of the ruble that is driving up building and equipment costs.

  • There were many Chinese attendees. It is interesting despite large financial losses in the swine industry the last 18 months and liquidation of over 5 million sows, large Chinese corporations are planning new sow barns. There seems to be optimism that swine production in China has a very bright future.

  • Animal welfare regulations in Europe can been seen in the type of swine equipment for sale. Many ESF systems, free stalls for gestation, and straw distribution for swine. The cost of production due to animal welfare rules certainly makes costs higher than in North America and Russia. Such regulations in all likelihood restrict the European Union’s competitiveness in the Global Pork Trade.

  • Danbred is dominating the European Genetic market. Their large litters – seem to be trumping the competitors. In the Dutch market, Hypor though based in the Netherlands has little market share left. Also in the Netherlands, Topigs – Norsvin is trying to plug the hole of losing customers, as demand for larger litters and genetics that will grade over 110 kilos is causing them a major challenge in their main markets of Holland and Spain. PIC has introduced new products. With their brand and relentless marketing they appear to be gaining ground against the Dutch competitors.

  • Europe has been long market for Pietrain boars. Lean product devoid of marbling has dominated the market. It appears there is a shift to Durocs in part of this market as some producers wish to have easier to manage pigs that producer tastier and flavourful pork.

Summary

Euro Tier was a great show. One attendee from North America told us US–Canada producers should come and see what is going on. They would learn much.

Author: Jim Long, President & CEO, Genesus Genetics

To find out more about Genesus Genetics,
please take the time to visit their website at
www.genesus.com.

The opinions expressed in this commentary are entirely those of the author and can not taken to represent the views of ThePigSite.com, its owners or its management.



Share This

News By

Related News

USA Hog Market

News from United States  24 November 2016

More News

Our Sponsors

Partners


Seasonal Picks

The Commuter Pig Keeper - 5m Books