EU Producer Prices Decline Again (December 2009)

By Chris Harris, Senior Editor, ThePigSite. Our snapshot of the ongoing global pig industry trends as reported in December 2009 Whole Hog Brief. To read the full detailed analysis including all the commentary and graphical data, subscribe to the publication.
calendar icon 3 December 2009
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The fall in producer prices in the European Union is continuing, according to the latest edition of Whole Hog.

Only the UK did not go into the red in October.

Prices have fallen by 11 per cent year on year and only Spanish, German and Slovenian pig prices are above the EU average.

The lowest prices were from Denmark where they slipped to €116.2 per kg, Whole Hog says.

Whole Hog says that the Danish industry appears to be a picture of lean efficiency but with a mean outlook.

"The Danes are well aware that they have to be mean as well as lean and, in particular, their strategy to deal with environmental issues may mean a fundamental rethink of how they structure their industry," Whole Hog says.

However, it also says that Danish Crown's strategy is paying off.

The 2008/09 annual results show increased earnings in the processing companies and a significant cut in costs across the group's Danish operations.

Will Global Industry Give Thanks to US Consumers?

Whole Hog says that all eyes have been on the US consumer in an attempt to gauge how much confidence has returned to the retail scene.

It says that the Thanksgiving holiday provides real time data of consumer confidence and gives and insight into the way the real economy is heading.

Whole Hog's analysis says it looks as though the US consumer believes the worst of the credit crisis is over.

Australian Pork's Strategic Plan

Australian Pork Ltd has just release a five-year strategic plan, centred on five core objectives.

It is aiming to increase consumer demand, reduce input costs, create value in the supply chain, ensure safe sustainable food and encourage a well-informed and well-connected industry, Whole Hog reports.

The aim is to create a competitive, responsible and sustainable pork industry.

The plan sets out drives on the demand and supply side.

However, Whole Hog also reports a gloomy picture for Australian pig meat exports and an increase in imports from the US.

The latest data shows a 19.2 per cent fall in total exports year-on-year. Imports on the other hand were up by 22.5 per cent on last year's figures.

British Producers are Bottom of the Class

Whole Hog reports that from the latest BPEX production cost figures, the British industry remains near the bottom of the European League.

It says the UK industry has an average performance of pigs per litter at seven per cent below the EU average and the average daily liveweight gain is now on the EU average at 757g.

Canadian Trade is a Mixed Picture

Whole Hog reports that Canadian exports have gained ground in some markets and lost ground in others.

Overall, trade is slightly down for the first nine months of the year, showing a four per cent decline.

Export figures for the US are declining and the market is weak, and Whole Hog says that the weakness of the dollar does not appear to have been enough to balance out the lack of demand.

In September, exports fell by 4.3 per cent to 149,319 tonnes compared to the same month last year.

The latest figures from Japan show that imports of pig meat fell by 11.2 per cent in the eight months to August.

The US is the main source of pig meat for Japan and Canada is in second place. The Danish exports to the biggest hit according to Whole Hog.

South Korea is seeing a fall in imports from all its main trading partners.

The total year to date figures to September for pig meat imports into South Korea fell by 15.5 per cent to 219,710 tonnes.

December 2009

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