Philippe Mallétroit – Director for France
Hog Market: higher prices
Clearly the drop in production is well felt in Europe. In France, during the month of January the hog price has gained 0,206 € per kg carcass (about 19.5 € per head) and continue to rise with a price of 2,06 € per kg carcass at the last market of February 6. The demand has been supported by the promotions of the month of January but especially because there are less pigs (-5.1% during the first four weeks of January). It is also very difficult to find currently piglets to buy to fill empty barns. Last week the 8 kg weaned piglet price was 36.38 € (15.32 € one year ago) and the price was 2.24 € per kg liveweight for a 25 kg piglet (1.08 € one year ago). Less pigs = high prices.
In northern Europe, where the fall in production is the more important, pork demand is improving a bit.
In Germany, offers are now lower than demand. The meat industry has to deal with the presence of foreign meat which complicates trade, but German pork cuts now sell more easily.
Slaughter activity in Belgium has fallen by 16% each week since the beginning of the year. In this context and following the German rise, the price was revalued by 8 cents per live kilo last week.
In Denmark, the price was stable last week but the gap is huge with other European quotations. A lower demand from many importing countries, especially from Southeast Asia, puts in difficulty the Danish market very oriented towards large exports.
In Spain, hog prices continue to rise in a context of lower supply than slaughter capacity of the packers who need pigs to dilute their fixed costs.
Source : Marché du Porc Breton
Categorised in: Featured News, Global Markets
This post was written by Genesus