Inside Pigs
Dark clouds over German pig market
Despite a series of nice barbecue weeks, dark clouds have recently gathered over the German pig market. Today, the difficult meat trade for weeks (in particular in export areas in Asia) led to a dull blow for the German pig quotations.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
While people had hoped for months for a revival of the meat trade when the corona measures were slowly lifted, the opposite seems to be happening. Although more and more people in many countries are finding their way to catering and events, the meat trade is suffering. In the wake of this, the German pork price has been significantly adjusted downwards by the Association of Erzeugergemeinschaften für Vieh und Fleisch.
Gulf of pork on European market
Now that Chinese pork importers have been reporting less often for purchases on the European market for several weeks, a lot more meat has to be sold within European borders. This puts considerable pressure on prices, causing quotations for various components to drop significantly last week. This has significantly reduced margins for slaughterhouses. Although the quantity of meat demanded within Europe recently improved somewhat due to the good weather and the lifting of the corona measures, the additional supply that was previously intended for China appears to be larger and more decisive for prices.
Due to the significant drop in parts prices, purchasing prices for pigs are now also being adjusted significantly downwards. This is especially painful now that slaughter numbers in Germany are at their lowest levels in years. The VEZG quotation drops by no less than €0,09 to a level of €1,48.