EU Pig Prices: German Slaughter Companies Are Exerting Pressure on the Prices

10 October 2016, at 12:00am

EU - The positive development on the European pig slaughter market received a major blow last week. Starting from Germany, the pigs for slaughter prices began to go into reverse in most of the countries.

The German slaughter companies are taking advantage of the short week of slaughter after 3 October in order to build up pressure on the live animals’ market.

By threatening with discounted prices they increase supply pressure considerably. Many a farmer had considerable quantities registered for slaughter in order to run ahead of the threatening price decrease.

Despite mostly balanced markets, the majority of EU member countries cannot elude of the clear price decrease observed in Germany.

The Netherlands (- 6 cents) and Belgium (- 5 cents) are mostly concerned. The Austrian pig keepers do have to cope with a 3 cents’ price decrease, although - according what states the VLV association of agricultural refining producers – the batches for slaughter are sold promptly and completely.

For that reason, the association clearly criticises the German slaughter houses behaviour.

In Spain as well, the price decrease amounts to around 3 cents (converted) per kg slaughter weight. There are reports that the slaughter weights are going up again after this comparably long summer. Larger quantities are exerting pressure on the market.

In France, the markets are mostly balanced, the slaughter weights are on a low level, and yet the prices are going slightly down by 2 cents as a result of the pressure coming from the other EU member countries.

Trend for the German market: Just as it is typical for the current market situation, it must not be expected that there is only one markdown. With the majority of marketers, there’s a lot of supply pressure still. From today’s point of view however, there are many reasons to suppose that the quantities on offer will go down again next week and the market will run freely again.