'Spanish import demand for piglets may fall'

He recently said this during a meeting of Klasse Ki in Son, Brabant, for buyers and parties affiliated with the pig sector in honor of the new boar stable that was put into use last year. Developments in the Spanish pig sector were also discussed in more detail.

Pig herd has grown by a quarter in 5 years
The pig herd in Spain has been growing strongly for years and the turnover of DanBred genetics in the country has increased significantly in the last 10 years. The number of pigs in the country grew by almost 2015 million heads between 2020 and 11, to 56,5 million animals. An increase of almost 25%. This is partly achieved by the low cost price that pig farmers in the country charge. In 2019, this was €1,39 per kilo, the lowest level in European countries. For comparison: in the Netherlands it was €1,56 per kilo.

'The goose with the golden egg'
The second driver of growth is the increased export of pork to third countries. Spain has also benefited greatly from Asian demand for pork in recent years, which market Extart described as 'the goose that lays the golden egg'. Despite the recent decline in demand, Extart expects that the Chinese will certainly remain partly import-dependent for the time being. He does, however, foresee more pressure and supply on the European markets. 

Number of slaughter hooks possible to support pig price
Recently, pig prices on the European mainland fell sharply everywhere. The Spanish rating also fell due to the declining exports to China. In 2020, Spain exported almost 1,4 million tons of pork to the Asian country, almost 4 times as much as in 2017.

Although prices have recently slumped, Extart expects that pig prices will be supported in the coming years by the relatively tight Spanish supply (measured by slaughter capacity). “There are currently insufficient pigs available in the country to fill all the slaughter hooks.” In addition, the German Tönnies is working on a slaughterhouse in the country. This will further increase the demand for the raw material pig. In this light, Extart also mentions the development in which slaughterhouses are playing an increasingly important role in setting up integrations, in order to better guarantee input. This is a new trend. In the past, integrations often originated from the compound feed industry.

Growth will not support demand for Dutch piglets
Another development that was outlined is the relatively limited growth in the number of fattening pig places in the country. At the moment, expansions are mainly taking place in sow farming. In some regions, fattening pig farmers experience difficulty in obtaining the necessary permits. With rising sow production figures in mind, Extart expects the country to produce approximately 5.000.000 additional piglets. If the development of fattening pig locations continues to lag behind, he predicts that Spanish imports of piglets will decrease in the coming years.

Strongly growing sector does have challenges
Although the Spanish sector has grown considerably in size in recent years, the sector also faces challenges here. For example, antibiotic use (already reduced by 58% since 2014) and the environmental impact are receiving attention, and according to Extart it is important to positively influence public opinion about pig farming in the country. The entire pork chain in Spain (feed to meat processing) accounts for about 2% of Spanish emissions.

In addition to these points of interest, something that was briefly touched upon is the economic role of pig farming in rural areas. The investments and developments of the sector are very important for keeping small villages and communities viable. Many pig farms are located in villages with fewer than 5000 inhabitants. Investments in these areas provide employment and can prevent degradation.

Export dependence is the biggest risk
The main risk for the Spanish sector is its dependence on exports, currently mainly on China. This risk is also immediately apparent now that Chinese demand for pork is disappearing - temporarily or otherwise - and this is putting pressure on prices. Cost price control is important with an export approach, something that DanBred can help with its high reproduction figures, according to Extart.