Pig Prices continue at good levels close to 1,50 €/kg ($0.91 USD/lb.) pig live and probably close to last year’s high. There are not enough pigs to send to slaughter. In the last 3 weeks the average carcass weight has decreased by 1.675 Kg (3.5 lbs.) and the extremely hot weather has reduced pigs’ growth all around Europe, even in Northern European countries.

As a consequence prices keep at the maximum level and piglet prices have decreased a little, because of most of the finishing barns are full at this time of the year. The impact of both the drop in sow numbers by European Animal Welfare regulations and high feed prices are having their reflection now. It is a general situation with small differences for others important countries like Denmark, Netherlands or France.

Pork consumption continues to be poorer. The market is still facing difficulties in transferring higher cost of production into customers’ prices getting pork at the retail level. Only some countries like Italy were able do it, remember that the Italian market is a little different with heavier pigs 165Kg (364 lb.) liveweight.

On the other hand, this period of time will be reactivated by a dry ham industry. Ham demand is supplied by Spain and Germany increasing the price of ham; unfortunately the rest of the cuts in countries like Spain continue to struggle to increase the price. In Germany there are fewer consumers in summer time, because of holidays where vacationers move to the south of Europe and other countries.

Exports to others countries continue without big jumps. The pork exports ban from Russia continue for countries like Spain. At the beginning of September Russian vets will review the possibility of restarting exports to Russia that were put in place to control the spread of African Swine Fever.

This price seasonality could be finishing at the beginning of September. It would be more hogs in the market plus cooler weather would make a pig getting out from the finishing barn faster. In any case the current higher record price is in a good position to let us think that this year will be a good year.

On the other side costs at the end offers relief to the producers. The current harvest is good in all Europe. Spain is around 20 million hectares, and Eastern Europe, (Russian and Ukraine) a record harvest in global world. North of Africa will produce 12 million more hectares than the previous year. Protein sources continue at a high price but also in the coming months we expect a decrease in price. With this perspective costs in pig production will reduce and complete the margin of business.