Inside Pigs
More pigs on the hook in Germany
With the reopening of the German slaughter company Tönnies, the air on the pig market is clearing up again and the German slaughter figures are recovering again. Meanwhile, the German cabinet has approved the ban on migrant workers in the meat processing sector.
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The slaughter capacity of Tönnies, where approximately 140.000 pigs can be slaughtered every week, disappeared completely after the meat company was forced to close. Other slaughterhouses stepped in, but that did not solve the problem. The decrease in slaughter capacity was also reflected in the German slaughter figures, which were structurally far below 800.000 in recent weeks. While the 1 million mark can be passed if slaughterhouses are at their wits' end.
Last week, after Tönnies had partially resumed its activities, the number increased to 822.384 slaughters. The slaughter figures therefore show a first step towards a recovery. However, the level is still about 8% below last year's level.
Pig prices stable
Now that we are in the summer period and the weather conditions are becoming more favorable, the BBQ season is starting again, which will benefit meat sales. Pig prices remain stable, hampered by ample supply. The German VEZG quotation remains at €1,47 per kilo. The Dutch slaughterhouse Compaxo also keeps the quotation the same at €1,26, as expected. In addition, pig prices in the most important countries in Europe also show a stable picture.
Ban on migrant workers
Returning to the situation with our eastern neighbors, the German cabinet agreed this morning (July 29) to improve enforcement in the field of occupational safety. This law stipulates, among other things, that from January 1, 2021, migrant workers may no longer be used for work in the slaughter sector.
Because the ban only applies to slaughterhouses, the meat sector has objected because it feels disadvantaged. Slaughterhouses with up to 50 employees are now exempt from the ban on migrant workers, previously the exemption applied to slaughterhouses with up to 30 employees. German Agriculture Minister Julia Klöckner indicated that she attaches great importance to the exception for small and medium-sized companies.
In addition to the ban on migrant workers at slaughterhouses, the law also addresses the quality and control of housing for migrant workers working in the agricultural sector.