Analysis Pigs
EU pig export price below Brazil and US levels
European pork export prices have fallen below those of the US and Brazilian markets, according to Eurostat data. Only Canadian pork remains cheaper. While this trend is negative for Dutch pork prices, the low level could actually provide some relief.
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At €146,59 per 100 kilos, the average export price is below the €156,80 charged in the United States. It's even lower than the average in Brazil, where meat from that country costs €162,18 per kilo.
Oversupply in the pig market has created cutthroat competition, particularly in the countries where the three major markets (the United States, Brazil, and the European Union) operate. In these countries (South Korea, Japan, the Philippines, and traditionally, China), the high supply has created a competitive market. Consequently, European pig prices have fallen below the levels of both the Brazilian and US markets.
Fortunately, this has significantly strengthened the EU's export position. For years, the export of muscle parts lagged behind on the global market because European prices were simply too high. Now that the European Union commands the lowest prices, it's not inconceivable that member states could benefit from stronger exports.
This is particularly interesting for the Netherlands and Denmark, as these countries have not yet encountered African swine fever. Both Germany and Spain, on the other hand, are partially excluded from the global market. As a result, both countries face significantly less competition.