Hogan warns of pig cycle

Pig farmers in Europe can produce again at attractive prices. Therefore, a traditional pig cycle is now the obvious choice. However, according to European Commissioner Phil Hogan, it is not wise to increase production.

Hogan says in the German Agrarzeitung that the European pig market relies almost entirely on sales in China. Due to this one-sided dependence, it is too great a risk to increase production.

That is why Hogan strongly advises pig farmers not to keep more pigs. On average, pig prices in Europe have risen by 2016 percent since May 24 to 175 euros per 100 kilograms of live weight.

Costs depress revenue
The pig farmers in Germany confirm that the prices are good. Despite this, the good sentiment is being weighed down by rising production costs and increasing competition from other European countries.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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