German Pig Sector Stays Buoyant

by 5m Editor
26 September 2008, at 8:18am

GERMANY - Germany expects its pig-keepers to have produced half a pig per sow more during 2008.

If this is the case, it will partially offset the five per cent fall in the national breeding herd in the first half of the year.

An average price of about 133p is being talked about for next year, with some pundits predicting the price reaching around 158p.

However, as in Britain, earlier forecasts of a bonanza year are being tempered by recent developments in the financial world and there are fears retailer and consumer resistance will prevent the pig price reaching its full potential.

Despite the five percent fall in the sow herd, slaughterings are currently running at a higher level than last year, mostly as a result of increasing numbers of Danish producers sending their pigs to Germany. Home production now accounts for only 80 per cent of Germany's total kill.

Again as in Britain, consumption in Germany is down due to higher retail prices, coupled with a weaker economy. However Germany's pig sector remains healthy, with exports up 30 per cent in the first half of the year and expected to be up by 15-20 per cent for the whole year.

With continued high levels of piglets from Denmark and Holland in 2009, it is likely slaughterings will stay higher than might otherwise be expected. At an average 133p next year, and with lower feed costs, Germany's producers can expect a profitable year.

5m Editor