European pig sector shows cautious recovery

The European pig sector has been in a negative spiral for a long time due to difficult market conditions, but the European Commissioner for Agriculture confirms that the pig sector is showing signs of recovery.

The European Commissioner for Agriculture and Rural Development, Janusz Wojciechowski, has sent an official letter to the various agriculture ministers within the European Union in which he reports on the pig sector.

Positive signals
The letter highlights that the pig sector has stabilized and is showing signs of recovery despite the pressures of the coronavirus crisis, export restrictions due to Germany's African swine fever and seasonally lower demand. Wojciechowski describes the rising piglet prices, decrease in the oversupply of pigs and the decrease in slaughter weights as positive signals.

Intervention
The positive signals do not mean that the pig market will pick up immediately. "Time is needed to fully assess the impact of the positive trend. Intervention in the pork market should be carefully considered, as the European pig sector is not homogeneous and an unequivocal solution is not obvious," the letter reads.

Slaughter capacity in Saxony
It is emphasized, however, that the situation is not improving in all German Member States. The areas affected by ASF are obviously in worse shape. Recently the Saxon State Farmer Association (SLB) indicated that the slaughter capacity in Saxony cannot keep up with the supply. Only one third of the slaughter requirement can be met. Wolfram Günther, the Saxon agriculture minister, stated that the slaughter capacity has not been sufficient for years. The Saxon Farmers' Association and the Ministry of Agriculture want to increase the slaughter capacity.

Chanti Oussoren

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets.

c.oussoren@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.