Mercedes Vega, General Director for Spain, Italy & Portugal
Summer arrived and we have been repeating thirteen weeks in the market price with the highest value ever reached, 2,03 €/kg live weight.
The market is increasingly looking for higher weights. We also have the highest weight at this time of the year, with more than 7kg than a year ago in live pigs.
The raw materials have gone down almost as much as before the war, but we are still far from the pre-pandemic price.
The price of piglets shows the lack of pigs. It has dropped somewhat, but it is at high value and it is very difficult to know at what price it is necessary to sell to compensate it. What is certain is that the import of piglets represents a small percentage, around 5%. There is and will be a lack of piglets and fat pigs.
The most important reason for this lack of pigs is the very aggressive strain of PRRS that has affected and continues to affect a very important part of the production. But this is not the only reason, to this must be added the increase of
- in sows of problems with high percentages of mortality and replacement of herd
- in piglets with low weaning weights and an increase in the number of mortality.
This has helped to reduce production in a very notorious way.
The producer, depending on the area, may be in a good position, but the packing plants have it very complicated. Supply and demand are unbalanced and will continue to be so.
The packing plants:
- They are buying at very high prices that cannot be reflected in the value of the meat.
- They need the necessary quantity of pigs to cover their costs as best as possible.
- export is difficult because of the price compared to other countries like USA.
- It is not possible to freeze to store at these prices.
- Already working 4 days a week to cover vacations and reduce costs.
World Mega Producer 2023
As it has been doing for the last five years, a few weeks ago Genesus published “World Mega Producer 2023”. In Spain the concentration of production continues, the census has not changed much, but they are changing hands.
In this new edition, we already have three Spanish companies among the 50 largest pork producers in the world. This year, the Valls Companys Group with 260,000 sows and the Costa Food Group with 155,000 sows, the Jorge Group with 105,000 sows have been added to the list.
Categorised in: Featured News, Global Markets
This post was written by Genesus