Inside Pigs
Stability characterizes European pig prices
Pig prices in the European Union today are characterized by stability, according to the price comparison of the German interest group ISN. Apart from a small increase in the French pig price, little will happen this week.
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Most pig prices in the European Union remain stable this week, meaning that the Dutch price remains at €1,723 per kilo for the seventh week. In Germany, the pig price remains stable at €1,796 per kilo and in Denmark the price is €1,736 per kilo for the fifth time.
The pig price in Spain also remains stable and is once again €1,930 per kilo. This means that the French pork price will rise slightly this week approaches, because the price here has risen from €0,004 to €1,903 per kilo. However, it remains to be seen whether the pig price will actually reach the level of Spain.
Belgian pork price lags behind
The pig price in Belgium also remains unchanged this week at €1,655 per kilo, although it appears that the price is significantly lower than in other European countries. The Flemish Producers Organization of Pig Farmers (VPOV) reports that this is related to the outbreak of African swine fever in September last year. This is also clearly visible in the graph below, because in week 39 last year the pig price plummeted by approximately €0,15 per kilo.
The organization has calculated that the total loss of revenue from pigs slaughtered in Belgium now amounts to more than €43 million. This is €4,76 per pig per delivered pig to a Belgian slaughterhouse. If we assume that approximately 90% of Belgian fattening pigs are delivered by 1.250 companies, the yield loss amounts to an average of €31.000 per company.
Supply remains more than sufficient
In most European countries, slaughterhouses are having to tighten their efforts to meet the Chinese demand for pork. That is why slaughter is now also taking place on Saturdays here and there. However, because the supply of pigs is still ample is, pig prices see no possibility of going up further.
Compared to previous weeks, the mood in the market has not improved any further, but rather has become somewhat weaker. This is partly due to China reportedly raising tariffs on pork imports from America will delete. This has a negative impact on European meat exporters. However, it remains to be seen what the actual consequence will be.