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EU Pig Prices: Europe Disturbed by German Discount Prices

12 August 2015, at 6:00am

EU - This current week, quite a number of European quotations are tending to weaken.

Starting from Germany, where the leading quotation had to be reduced by 2 cents, the prices are also drawn downward in Denmark (- 3 cents), in the Netherlands (- 3 cents) and in Belgium (- 1 cent).

But in truth, the German pig keepers are hit much harder still, because several major slaughter companies are only paying discount prices (- 5 cents).

According to the slaughter companies, this fall in prices must be attributed to the weak meat trade.

Whether or not another price reduction would stimulate demand is a matter of doubt, though. Many a producer in Europe is in deep water anyway.

Last week’s prices could be maintained in Spain and France. Yet, pressure is increasing in those countries as well. Slaughter weights have gone up for the first time in weeks in Spain.

Due to low quantities on offer, the Austrian pig market is reported to be balanced. Against this background and according to what was argued in Austria, the price might be held on the previous week level.

Trend for the German market: The German slaughter companies’ discount prices once again caused major harm, resulting in uncertainty on all levels.

It is incomprehensible how companies like the corporate Westfleisch may participate in this kind of behaviour.

Fearing further price drops, some producers have considerable numbers of pigs registered for slaughter at short notice. However, considerable gaps are going to show in the slaughter companies’ order books as of mid-week.

Lowering the associated price to the discount prices’ level for the forthcoming week would be quite the opposite of what is going on on the real market. Wherever possible, the slaughter companies concerned should be avoided.

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