EU pig prices: prices rise but uncertainty looms in Germany

European pig prices continued the upward trend observed last week though the slaughter companies in Germany are not accepting of the price increases.

21 August 2019, at 9:28am

ISN reports that price increases are noticeably more moderate than in the previous week, ranging from the revised level of 1 cent in France to 4 cents in Denmark. In the Netherlands and Spain, prices were kept at the previous week's level. The British listing increased due to exchange rate.

The supply of slaughter pigs is still below average, although some reports have emerged of an increase in prices, primarily due to the daily gains of fattening pigs correlated with the end of the summer heat period. According to the monthly overview of the EU Commission, 1.1 million fewer pigs were slaughtered in the first five months of the current year than in the same period of the previous year.

At the same time, the meat market has developed nicely. On the one hand, the end of the summer holidays provides impetus for demand and simultaneously, demand is increasing from ASF-affected regions. Spain is registering a rising pork demand from China, for example.

Overall, an increasing demand for pork from the EU is expected. The latest facts speak for themselves: the Chinese pig population has fallen by 9.4 percent in July compared with the previous month, according to the Beijing Ministry of Agriculture. Compared with July 2018, according to the official sample survey, the national herd has decreased by 32.2 percent.

Despite a relaxed market situation across Europe, sentiment in Germany darkened following the recent rise in prices. The slaughter companies Tönnies and Vion do not accept the price increase of 3 cents and pay house prices.

Graph shows that the top five pig-producing EU countries have seen an increase in pork prices this week
The top five pig-producing EU countries have seen an increase in pork prices this week