ISN: 'Do not supply to the large slaughterhouses'

Although the supply was not large, the German pig price fell by €2 to €0,05 per kilo in the last 1,39 weeks of July. Part of the price drop occurred in the first week of August nullified, because the quotation increased by €0,02 per kilo. This upward movement was followed by the large slaughterhouses.

Margin under pressure
Still, the ISN is upset about it the pressure that the large slaughterhouses have carried out in recent weeks. German pig farmers are therefore plagued from all sides. A falling pig price also puts pressure on the piglet price; it fell sharply in July. The feed costs, while also the manure disposal involves difficulty. According to the ISN, the German pig farming industry also faces political uncertainty.

The ISN is aware that meat sales on the global market does not happen automatically. Moreover, domestic sales are also rather lackluster during the holiday season. However, pig farmers should not be the final point in this story, according to the ISN. This signals that the margins have fallen to the critical zones.

Retaliation
Meanwhile, the demand for pigs in Germany is increasing again. The rising pork prices and declining slaughter figures and weights are proof of this. Some states are also approaching the end of the holiday period, which means that the market is again in favor of producers. The ISN therefore calls on pig farmers to take retaliatory actions by not supplying pigs for the time being to slaughterhouses that put pressure on prices. Those who do have no right to complain at the next 'hauspreise'.

The question is whether the ISN's call is realistic. This is because the 3 large slaughterhouses have almost 60% of it market share have in your hands. Passing through these sales channels is probably more an illusion than a reality.