News Pigs
Pig farmer is the winner of the prize rally
According to Rabobank, the pig market is still very tight. In a new report, the bank concludes that pork production is falling in all European core markets. For the time being, the higher prices seem to be mainly in favor of pig farmers.
European pork production is declining rapidly, Rabobank concludes. In the entire European Union, production fell by no less than 10% between January and April. Production fell most sharply in Denmark. Pork production in that country fell by no less than 21%. Production in the Netherlands fell by 12%. Slaughter volumes also fell sharply in Germany (-9%), Spain (-7%), Poland (-7%), France (-6%) and Italy (-5%).
In addition to production, consumption in Europe also decreased by no less than 7%. Exports fell by 18%. In addition to the EU, the United Kingdom also saw production decline. Production fell by no less than 17%.
The Netherlands
The fact that the Netherlands is in the leading group of fallers is somewhat misleading. The Dutch pig herd declined less than average and the export of Dutch pigs increased by 2023% in the first half of 4. The larger exports are the result of increasing tightness in other European core markets. Germany in particular is an important privateer on the coast. Exports to our eastern neighbors increased by no less than 42%. On the other hand, the Netherlands exported 53% fewer pigs to Belgium and 40% fewer pigs to Spain.
Record prices
Due to the lower production, European pork prices reached new record prices time and time again. On average, the carcass price in week 25 of 2023 was 29% higher than in the same period of 2022. In addition, the market does not follow the usual seasonal pattern. Pork prices normally fall due to the holiday period, but prices are still at record highs for the time being.
Due to lower feed prices, the margins of pig farmers are currently historically high, but slaughterhouses see their profits disappear like snow in the sun. The retail sector is currently exerting strong pressure on meat processors to prevent further price increases for consumers.
Matthew Bremer
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