Philippe Mallétroit – Director for France
Hog Market
The situation is very similar currently in Europe, there are few offers but the demand is satisfied with that. Consumption stagnates in many places for different reasons as inflation, elevated temperatures and maybe change in eating habits.
Price stability therefore seems to be a compromise between low supply and difficulties in the meat sector to apply new increases in pork cuts in a sluggish market. In this context, most of the price trends encountered in recent weeks have been renewed.
In France the hog market price is stable at 2.353 € per kg carcass since the 17th of July. After the 14th of July, a day off in France, the demand for market pigs is lower for some packing plants.
Estimated pig prices per country
Some news from the French industry
We all know that losses have been significant throughout Europe over the past two years: higher feed prices, higher energy prices, low profitability in the pork industry. The French sow herd has recently fallen below 900,000 sows (more than 1 200 000 sows 20 years ago).
Some French actors argue for a price at 3 € per kg carcass … is this really serious in an inflationary European market, and especially without segmentation of our market, by continuing to produce the same pork with low taste qualities ?
In France, as elsewhere, the market is shrinking. The number of players and the number of producers is decreasing. The latest evidence, the 2nd biggest cooperative specialized in pig production start to get closer of another big French cooperative who is involved in pig production but who owns also many processing plants and some strong brands with add value.
Also in the genetics sector, where one of the main French genetic players is acquiring another French swine genetics company.
The French pig industry is shrinking. Maybe it is time to start to chase profit and add value instead to chase lowest cost of production.
Source : Marché du Porc Breton
Categorised in: Featured News, Global Markets
This post was written by Genesus