EU Pig Prices: German Fall in Prices Leads to Split Price Trends

10 July 2012, at 9:23am

EU - The European slaughter pig markets appear to be split. While many countries, such as Spain, Denmark and Austria, reported a steady price level, other countries were involved in the maelstrom of price decreases, which had been triggered by a few major German slaughter companies at the end of last week.

The price gap is becoming wider and wider for the pig keepers, with prices for cereals and feedstuffs increasing. Therefore, at present there can be tal of profitable pig production.

But even last Friday’s new price fall was not sufficient for some entrepreneurs. Vion, for instance, still goes on undercutting prices with their own price of €1.58. Westfleisch, as well, seems to be wanting to be among the companies giving their own prices, now also paying only €1.58 .

Again, the argument for this is the difficult export business to Asia, weak domestic demand and the start of the holiday season in many German federal states. According to information from Spain, South Korea now has concluded a new import quota of 50,000 tons of bacon at reduced customs duties in a bid to stabilise the local price level and bring down inflation.

The Austrian market is reported to be balanced. There, the summer weather saw a return to daily growth and lower quantities of pigs on offer. But in Southern Europe, in countries such as Italy and Spain, the current heat has made the numbers on offer scarcer.

In France, on the other hand, the pig prices are under pressure again after last week’s price increase. Higher prices could not be enforced there, because of the low German prices among other reasons.

Trend for the German market: After last Friday’s new price decrease, many market participants expect finally to see an end to the downward spiral of pig prices. The numbers of pigs for slaughter on offer are by no means excessive and can be placed continually and promptly despite the slaughter companies’ complaining about the difficult meat business.

Further Reading

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