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Ideas for buying pigs in Germany too

31 March 2021 - Stef Wissink

The branch of the German political party Die Grünen in the federal state of Niedersachsen is calling for a buy-out scheme for pig farms within the province. It should be a financial support package that helps companies to switch to new revenue models.

Such an arrangement would be necessary to respond to changing market conditions. Due to African Swine Fever (ASF), the economic prospects of pig farms have deteriorated at the moment, according to the party. In addition, corona infections in slaughterhouses at the end of last year and at the beginning of this year caused a so-called 'schweinesteau'. Many pigs could not be slaughtered in time due to the corona problem, which created a 'traffic jam' of pigs. This has contributed to increasing price pressure on the pig market.

Less consumption
The political party also indicates that recent figures show that pork consumption is still under pressure. In Germany, pork consumption has been falling for almost 10 years. Pork consumption continued to decline in 2020.

buyout
According to the party, all factors together make it clear that it is time for pig farms to develop new revenue models and to dispose of the pigs. It should be a social plan in which companies are financially supported. This allows them to switch to other revenue models. Something that is important to maintain the activity and economic activity for the region.

Pig union ISN finds plans to attract attention
The interest group for German pig farmers (ISN) has criticized the plans, labeling them attention-grabbing and populist. The ISN thinks the idea is unwise and believes that it is precisely the problems that the sector is currently dealing with that should be tackled by the government. The ISN also fears that if the Die Grünen's plan is implemented, pork will eventually have to be imported. Meat from countries where production standards may be very different.

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Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

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