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Spain and EU Hog Markets

by 5m Editor
26 July 2012, at 10:02am

EU - Spain's pig price continue being the Europa highest 1,38 €/ live pig Kg (0,77 USA $/ live pig pound) and same price during the last week of June, in spite of an insufficient offer the price of the pork does not rise, writes Javier Santamartina, Spain, Italy and Portugal Genesus Representative.

This explains partly to the rest of countries of Europa's center. This month there have been imported alive pigs from France and carcasses from Germany. This a rare event in this market. Spain’s export carcass, cuts to Germany and pigs to France is not significant.

Genesus Global Market Report
Prices for the week of July 16, 2012
Country Domestic price
(own currency)
US dollars
(Liveweight a lb)
USA (Iowa-Minnesota) 93.50¢ USD/lb carcass 69.19¢
Canada (Ontario) 1.75¢ CAD/kg carcass 62.63¢
Mexico (DF) 22.68 MXN/kg liveweight 75.90¢
Brazil (South Region) 1.94 BRL/kg liveweight 43.19¢
Russia 95 RUB/kg liveweight $1.31
China 13.35 RMB/kg liveweight 94.82¢
Spain 1.38 EUR/kg liveweight 75.86¢

There are reasons for an increase of price, the offer is scanty and does not seem to have solution, in the short term, to get it any short but of having taken place strong imports that would concern the domestic market. Therefore it seems that it will be kept stable without rising prices but keeping it stable and strong anyways. The summer heat helps pork producers to support this situation.

The pork markets plow depressed especially Spain and Portugal Market. There are lot concurrences between packing plants with very low margins. This situation inhibits the raises.

A short review of rest of main countries of Europe in pig productions:

France: Average price on farm 1,252 €/Kg hog live (0,70 $/ live pig pound) equivalent 1,437 €/kg Carcass (0,80 USA $ /pound carcass).

For the next months the offer with 10 per cent less of kill animals every week of this year compared to last year, and this trend probably will increase the price.

Denmark: Average Price 11,30 DKK (1,52€/Kg carcass) (0,85 $/ live / pound).

The prices and sales of hams and cuts from Denmark continue stable and continue fluid on international markets like Russia and China. Slaughter is down 7 per cent less compared at the same period of last year.

Germany: Average Price 1,27 €/kg live (0,71 USA$/ live pig pound).

Packing plans are reducing slaughter, specially the packing plans focus to export. Starting holidays period in the main producer region which normally reduces the slaughter numbers producing an expected reduction in prices for the coming weeks.

There is new data about the numbers of pigs in Germany. The official inventory shows 1 million more pigs this year versus previous year. There is a lot of debate about the recently release numbers by the government agency. Some experts say that data are not full comparable and talk that probably there are the same number of pigs and there is not technical reason for increasing it. Over the second half of the year the decrease of number slaughter pigs will be compensate bypiglets imported from Netherland and Denmark during the first six months of the year. The number of sows continue to getting shorter -1.34 per cent less sows (around 30.000 head less). This has been compensate with increasing in productivity (piglets/sow /year) around 2 per cent.

Italy: Average price 1,35 €/kg (160 kg).

Not strong demand of pork in the Italian market over the last month. Steady prices.

It is important to compare price between countries that the price received by producers is official price less discount in Spain (average -0,04) and in the rest of countries receive price plus premium (+0.05 depending of country).

Other important things for the future is the agreement of Codex Alimentarius (Food Oficial Agency ) to limit of raptomicine residues in pork in 10 micrograms per kilogram of pork and 40 micrograms in liver/kg. Raptomicine is used in finishing pigs to increase growth and to keep lean carcasses. This limit probably must be not accepted in other parts of the world and could get difficult to export pork.

Also the Spain crops are not doing any good and this situation added to high price of grains and specially soya. Barley (216 €/ton) and Soya (420 €/ton).

Summary

Summer will be stable in Europe with Spain leading.