Philippe Mallétroit – Director for France, Genesus Inc.
Difficult period due to Covid and ASF
Covid and ASF lead to lower hog market prices in Europe. In a very particular context, hog market price in France lost 14.9 cts (0.18 $) per kg carcass in November. Since then, price seems to continue dropping – 1.201 € per kg carcass (66.24¢ US per lb. carcass) on December 7th.
Since the end of October, a new lockdown has started in France due to Covid, and all restaurants, bars, and many stores are closed. At this time we don’t know yet when restaurants will reopen (probably not before end of January). Of course, this leads to a decrease in consumption including pork.
Moreover in North of Europe hog prices decreased too, 8 cts less per kg in Germany in November. Two packing plants in Denmark had to stop their exports due to Covid – That means more pork remains to be sold within the European market resulting in even lower prices.
Almost 0.42 € per kg difference (51¢ US dollar per kg), or about 47 € ($57) per hog lost since January 1st. with the average market price from January 1st to November 30th, 2020 of 1.406 € per kg carcass (77.13¢ US per lb. carcass), compared to 1.480 € (81.21¢ US per lb. carcass) in the same period last year.
We expect that the market will stay like that for many weeks (or months) and some producers close to retiring will probably start to consider going with a stop of production.
Source for report : Marché du Porc Breton
This post was written by Genesus