SPANISH HOG MARKETS
Traditionally, the end of the year heralds a decrease in pork prices in the Spanish Market. After exceptional summer prices, the market has seen a decrease in prices from 1,49 to 1,28 €/kg ($0.89 to $0.75 USD/lb) live weight and it not clear as of yet how far it will fall. The last two years has a decrease of 17 Cents €/kg & 23 Cents €/kg ($0.10 USD & $0.14 USD/lb) respectively, with a decrease of 17 Cents €/kg ($0.10 USD/lb) in 2009. One thing to keep in mind is the Autumn start price was 20 Cents €/kg ($0.12 USD/lb) higher than previous years. After a good summer of pig prices, the offer of pigs grows and carcass weight increases. The autumn temperature has allowed good pig growth thereby increasing the pig offer, however on the other side the demand has decreased for 2 main reasons:- The exports to countries like Russia and China have not managed to support the expected levels. There are several factors impacting the exports. Import prices are low in these two countries and there is a difficulty in competing with other export countries like the US who have lower prices and with better exchange rates. Import levels in these two countries are lower this year as compared to the same two month period in 2011.
- Excess pork production must be sent to other countries in the EU and the general crisis atmosphere of the European Union has put more pressure on the pricing. Generally speaking there is a decrease in all meat consumption with vegetable protein derivatives being cheaper. Slaughter houses can sell their pork but they must lower the price in order to remain competitive. In Germany the price must be lowered 5 cent € /kg ($0.03/lb USD/lb) to make it attractive to the market.
Pig Price Evolution
Other factors such as the high price of raw materials, soya (record high prices) and grains.
Soya 480 €/ton ($17.06 USD/Bushel) |
Corn 260 €/ton ($8.63 USD / Bushel) |
Wheat 270 €/ton ($9.61 USD / Bushel) |
By Javier Santamartina, Spain, Italy & Portugal Genesus Representative Email big.saint.food@gmail.com
Categorised in: Pork Commentary
This post was written by Genesus