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EU Pig Prices: First Positive Price Development

27 August 2015, at 12:00am

EU - The price development on the European pig slaughter market appears in a split way this week.

While some markets such as Germany, Spain and France had been under price pressure over the past days, being forced to lower their pig prices by 1 cent, the countries neighbouring Germany in the west, Belgium and the Netherlands, reported on first positive stimulus and a 1-cent plus.

Initial approaches have been made there to catch up with the last weeks’ price decline. In France, the Marché du Porc Breton auction started again last week. The week before, both auctions had been subject to intense quarrel with some slaughter companies. On Tuesday and Thursday the auction results went below the last auction’s result by 1.5 cent.

Since, however, not all purchasers from the slaughter industry were present a vast part of the pigs on offer could not be sold. Further escalation of the situation related to low quantities of pigs on offer is reported from Austria. Among other things, this is attributed to worse fattening results caused by the hot temperatures.

The European environment being weak, no price increase could yet be realised in Austria. Over the weeks before, the Austrians had again and again complained about low-priced pork put on offer by the German slaughter companies.

Trend for the German market

Based on last week’s lowering of the associated price the situation has improved as to discounted prices. Meanwhile, the major slaughter companies have returned to the usual pricing conditions, casting off new discount prices.

The scarce quantities on offer of pigs for slaughter remain briskly wooed. Pigs may be sold swiftly. Whether or not the mood will remain positive on the market and be suitable to cause a trend reversal on Wednesday remains to be seen over the next days.

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