'Staff shortage weighs on German pig processing'

The old Murphy's Law seems to apply more and more to the pig market: problem after problem keeps piling up. In addition to declining meat sales, the outbreak of African swine fever and the impact of corona, German pork processors are now faced with staff shortages. Traders who deliver to Germany can sell fewer pigs.

The problems would especially play in the relatively labour-intensive meat processing companies. For example, locations of Westfleisch (including Coesfeld and Erkenschwick) as well as Tönnies would have been affected by the lack of personnel. The German SuS reports this online.

Cause versatile
Slaughter companies have been obliged to hire employees since the beginning of this year. Looking at the net salary, however, this does not seem to be immediately positive for the employees. Due to the permanent contracts under which people are now active in processing, the social charges for employees are often higher. This ultimately results in a lower net payout. In addition, there is criticism of the amount of corona tests that employees have to undergo and the long time they are unable to work if they are infected with corona.

The costs for the lack of staff would add up considerably. For example, some slaughterhouses are forced to sell meat where processing has not yet been completed. These products are even more difficult to sell in the current difficult market for pork. According to experts, the costs for this lack of value for the end product could amount to €10 per animal.

Dutch sales also affected
Dutch traders can confirm the difficult situation. They indicate that they can supply fewer pigs to the Tönnies location in Sögel in particular. The location was already running at a lower capacity recently, but has been forced to further reduce the numbers. According to sources, the company now processes about 7.500-8.000 slaughter pigs every day. Until recently, there were around 10.000, and in the past at least 13.000 per day.

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.

s.wissink@boerenbusiness. Nl

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