EU hesitates to intervene in pig market

During the first wave this spring, intervention on the pig market from the European Union was not discussed, because pig prices were still high at the time. According to Agriculture Commissioner Janusz Wojciechowski, the consequences of the second wave of corona are also less extreme than during the first wave, because the free movement of goods at the internal borders is not hindered. On Monday evening, Wojciechowski did not provide any clarity about a possible intervention after the EU agricultural ministerial council.

Thorough analysis
Since African swine fever was found among wild boars in East Germany and China no longer buys pork from Germany, the European pig market has collapsed. During the council meeting of European agricultural ministers, several countries raised major concerns about pig farming. The combination of corona and African swine fever increases concerns. Wojciechowski indicated that not only the control of African swine fever, but also the economic situation in European pig farming has the full attention of the European Commission. He left open whether and how the EU will intervene in the pig market in the short term. First, the Commission wants to analyze the situation thoroughly, not only in the short term, but also in the long term, he said during a press conference after the agricultural ministerial council.  

Does regionalization help the EU market?
German Agriculture Minister Julia Klöckner, chair of the EU Council of Agriculture Ministers, emphasized the distinction between African swine fever among wild boars in the wild and on pig farms. African swine fever does not occur on pig farms in Germany, unlike Eastern European countries. However, so far this regionalization strategy on the European pig market has not led to less imbalance between supply and demand in international trade. The Belgian pig farming industry, which has been dealing with the consequences of African swine fever since 2018, recently sounded the alarm. Spain, on the other hand, could benefit from regionalization. Pork prices in China are rising. The Netherlands and Denmark take an intermediate position, because the sales market is largely in Germany. Corona infections in slaughterhouses and the spread of African swine fever can further increase the imbalance between supply and demand.

EU financing fencing
In a European context, increasing the biosecurity of pig farms is emphasized, as it is not obvious that African swine fever among wild boars will quickly disappear from the European Union. Installing fencing to prevent further spread of African swine fever is also seen as an important measure. In the Council of Agriculture Ministers, Poland and the Czech Republic expressed their dissatisfaction about the lack of EU funds to finance fencing.