Analysis Pigs & Pork
European pig market finds new balance
At the pig market, the supply in Southern Europe normally increases around this time of year, but this year that pattern was broken. The Dutch production also remains low. However, there is a significant German slaughter figure. In addition, the demand from Italy is higher than usual due to African swine fever.
The pig prices remain quite stable. The DCA market price does not move and remains at €1.96 for the third consecutive week. Meanwhile, the German pig price also remains at €2.00.
At first glance, there is still little change in the pig market. The market is much more stable than usual for this time of year. Normally, pig supply increases in early autumn in Southern Europe. Because temperatures drop during this time of year, pigs consume less energy to cool their bodies. This particularly benefits meat production in the South. However, it is heard in the market that the extra supply remains the same. If this situation were to change, it could quickly affect meat prices. Due to the relatively low demand, not much extra meat is needed to push prices down.
It is heard in the market that the demand is not bad. This means that there is enough demand for the supply, although the market is not exactly flooded with pork. Overall, slaughter figures in Europe are stable, but the Dutch slaughter figure lags behind. In week 39, 277,000 pigs were slaughtered. The previous year, the slaughter figure was 293,000. That is already 5,000 pigs less than would be expected based on the five-year average.
A higher slaughter figure in Germany, among other factors, contributes to balance. In week 39, 763,000 pigs were slaughtered. This is 25,000 more pigs slaughtered than the previous year. Week 40 was not much different. One slaughter day was skipped that week, causing the slaughter figure to drop to 658,000 pigs. However, the previous year saw 624,000 pigs slaughtered.
ASF leads to increased ham demand in Italy.
Additionally, African swine fever (ASF) in Italy is causing tension in the market. Major European slaughterhouses report that extra pork is being exported to the Southern European country. Due to the virus outbreak, the Italian government has already culled 120,000 pigs. Furthermore, a transport ban has been in place for 700,000 pigs for a month. The outbreak affects roughly 7% to 8% of the entire Italian pig population. As a result, ham producers in Northern Italy (such as the famous hams from Parma and San Daniele) are experiencing shortages, leading to a significant amount of hams being imported from Northern Europe.
