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EU Pig Prices: Steady to Weaker Quotations in Europe

21 December 2011, at 8:47am

EU - Now, just before Christmas, the slaughter pig market varies across Europe.

The Danish pig producers have to accept the most severe price concessions. In Denmark, Danish Crown quoted a converted €1.56 which is six cents less than the week before. It is said that expecting lower exports over the weeks ahead, especially to Russia and Asia, is the reason for this kind of price decrease.

In France, the auction held in the region of Brittany displayed a price falling below that of last week by three cents. In comparison with the extensive quantities on offer, demand is quite reduced in France.

Belgium and Spain are facing prices reduced by two cents. For the current week, unchanged prices are notified by the Netherlands, Italy, Sweden and Ireland. As a result of good marketing opportunities given for slaughter pigs, the producers’ association released an unchanged quotation for Germany on Friday (16 December).

Producers found it incomprehensible that Tönnies as the industry leader announced a price last Wednesday which was down by four cents. Other companies, such as VION and Danish Crown, followed suit with their own house prices by the same amount.

Trend for the German market: Ever hoping that they might carry over into next year, the price level they have achieved, producers were quite moderate in asking prices. With it, they certainly have not drawn a long bow.

Yet, the situation shows again that the slaughter companies takes advantage of any reason to exert more price pressure on producers. This time, both Christmas and New Year will be celebrated at a weekend. So, there will only one day of slaughter fewer. So far, no pressure has been built up on the supply side on the slaughter pig market. The lots registered are still marketed continuously. It remains to be hoped that the producers draw their own conclusion from the house prices and redirect as many of their pigs as possible to other slaughter companies.

Explanation (Source: ISN - Interessengemeinschaft der Schweinehalter Deutschlands)
1) corrected quotation: The official Quotations of the different countries are corrected, so that each quotation has the same base (conditions).
2) These quotations are based on the correction formulas applied since 01.08.2010.
base: 56 per cent lean-meat-percentage; farm-gate-price; 79 per cent killing-out-percentage, without value-added-tax

Further Reading

- You can view the full report by clicking here.