Philippe Mallétroit – Director, Genesus Inc. in France.
Since our last report in March, hog market price continue to increase in France. That’s a good thing, because it was necessary to counterbalance the increase in the feed price. Indeed, today, a finisher feed diet price is close to 300 € per tonne ($332 US /ton) when the producer is supplied from a feed mill. It is a big number.
In May 2021, the market price average was 1.542 € per kg carcass (85.3¢ US /lb carcass). That means French producers were paid about 1.692 € per kg carcass (93.9¢ US /lb carcass) with premiums (lean meat premium, …) included.
In comparison, in May 2020, the market price average was 1.214 € per kg carcass (67.1¢ US /lb carcass) or 1.364 € with premiums (75.8¢ US /lb carcass)
In recent days in France the weather is improving with good temperatures (after a rather cold and rainy spring), and restaurants will reopen after the Covid pandemic. We can therefore expect that demand will be stronger, and hog prices will continue to increase.
Furthermore, IFIP (French Pig Institute) has forecast hog production and feed prices for 2021, and production European production is expected to remain stable but with contrasting situations depending on the country: growth in Spain and Denmark, and decline in Germany and the Netherlands.
International demand, particularly from East Asian markets, is expected to increase. European exports to third markets are expected to be 14.5% in 2021 compared to 2020.
In France the hog price should gradually increase compared to 2020, and in particular from the second half of the year to reach 1.63 €/kg (90.7¢ US /lb carcass) carcass annual market price average.
Source : Marché du Porc Breton, IFIP
Categorised in: Featured News, Global Markets
This post was written by Genesus