EU Pig Prices: Price Pressure Continues

EU - The EU slaughter pig market quotations are maintaining last week’s trend. While prices remain under pressure this week in the northern and central European member states, markets appears balanced in the southern countries.
calendar icon 20 July 2017
clock icon 3 minute read

Once again, most of the pressure has been exerted by German slaughter companies. Complaints about a lack in demand from inside and outside of Germany cannot be ignored.

Even the clear price decrease related to the quotation of as much as 6 cents do not seem sufficient for the German slaughter companies and as a result, have decreased their payment prices by 8 and 9 cents respectively.

Belgium (minus 7 cents) and the Netherlands (minus 6 cents) have been reacting in a similar scale. The price decrease was a little more moderate in Denmark, where the drop amounted to 4 cents.

The Austrian quotation currently also appears comparably settled towards the German leading quotation. While the German producers had to cope with a price decrease which was more than 11 cents in no more than two weeks’ time, Austria's drop in quotations was by a mere just 5 cents.

According to the Austrian VLV (agricultural upgrading producers), the live animal market has been cleared. However, the meat business appears to be cut off because German parts of meat were sold for far less than the required price.

Meanwhile, the price gap between the German and Spanish quotations went up to approximately 25 cents. Low slaughter weights, little quantities on offer because of the hot temperatures and high demand by the holiday-makers make the Spanish quotation remain steady.

Trend for the German market:

At this point, there are many different opinions as to how things are going to develop. While livestock marketers report on decreasing quantities on offer and say they see a trend for stabilisation, slaughter companies are trying to keep the price pressure going.

With the weather forecast being mostly friendly for the upcoming weekend, impetus might be given as needed and hoped for to enliven demand. So, from the latest point of view, another drastic price decrease does not seem likely to occur.

(Source: ISN - Interessengemeinschaft der Schweinehalter Deutschlands)

1) corrected quotation: The official Quotations of the different countries are corrected, so that each quotation has the same base (conditions).
2) These quotations are based on the correction formulas applied since 01.08.2010.
base: 57 per cent lean-meat-percentage; farm-gate-price; 79 per cent killing-out-percentage, without value-added-tax

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