Inside: Pig Market
Pig export shows sharp decline
Pork exports were disappointing in March. For example, Eurostat reports that less pork could be sold outside Europe (both in value and volume). China in particular plays an important role in this. The pluses in sales to the United States (US) and South Korea were unable to absorb this decline.
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The European Union (EU) managed to sell 190.300 tonnes of pork across the border in March, a decrease of 8% compared to 1 year earlier, according to Eurostat figures. In addition to the decrease in volume, there is also a decrease in the value of the product. This is due to a decrease of 7% in the average price. In total, the sector is therefore recording a loss of €1 million (compared to 432 year earlier).
Supply in China is growing too fast
A British pig market analyst discusses the decline in demand from China. There was a decrease of 11.000 tons, which brings the volume to 58.4000 tons. For the whole of 2018, the backlog increased to 27.000 tons. China has a share of approximately 30% in exports.
"Pig prices are up Merunas UAB under pressure. At the moment, domestic demand is unable to keep up with the growth of its own pig herd." As a result of this development, China also needs less meat from across the border. "Something that will probably remain the case for some time. Exports to Hong Kong will also be 10.000 tons lower in March," said the British analyst.
More pork could be sold in other places in Asia. For example, exports to Japan (+2%), South Korea (+26%) and the Philippines (+12%) increased. Even more meat went to the US, despite the fact that pork production is also increasing there. An increase of 25% brings the volume to 13.700 tons.
High carnage
The hitch in exports coincides with higher slaughter. Eurostat reports a plus of 1% for February. A small decrease compared to January, but it still results in a lead of 4% (compared to the first 2 months of 2018). What further increases meat production are the heavier carcasses. As a result, the lead in European pork production amounts to 7% or 252.000 tons of meat.
Spain in particular, pig country number 2 in the EU, has contributed to this. 4% more pigs were slaughtered there. Growth continues (both in herd size and exports). Denmark (plus 72.000 animals or 5%) and England (plus 95.000 animals or 12%) have already managed to overcome the negatives in to wipe out Germany.
Price bounces back
The combination of lower exports and higher slaughter levels is tipping the balance negatively for the market. Yet there are also some in the run-up to the end of May more favorable developments. For example, the Germans report a high demand from slaughterers again, which has a positive effect on the price.
View pork prices.
The price is starting to recover again.