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Downward Trend in Slaughterings Forecast for 2012

by 5m Editor
1 February 2012, at 9:30am

GLOBAL - Pig slaughterings in the European Union grew two per cent year-on-year during the first three quarters of 2011.

The UK and Poland had the strongest growth rates of nearly 7 per cent, while production in Denmark rose by 5 per cent, according to a report prepared by QMS's Iain Macdonald and Stuart Ashworth. Expansion also took place in Spain and Germany where slaughterings increased by 3 and 2 per cent respectively. However, a downward trend is forecast to continue into 2012 as sow herds have contracted in a number of Member States.

Most French pig producers failed to make a profit in 2011. Losses were made as increased feed costs pushed production costs above €1.50/kg. Brazil too witnessed a decline in pork exports. In December three Brazilian processors were permitted to resume exporting pigmeat to Russia. Hence there is industry optimism that further access may be granted as 2012 progresses.

After the US recognised the Brazilian province of Saint Caterina as the only FMD-free state, it gave the latter's pig sector a boost. The FMD-free status was recognised 14 months ago, but due to worries, this was delayed.

According to USDA census, the US pig herd grew by two per cent in December 2011. However, the breeding herd expanded at a more modest pace, indicating a mere 4 per cent growth. On the one hand this indicates a substantial improvement in productivity, but on the other hand it suggests that producers are exhibiting caution. Abattoir throughputs rose 2 per cent during 2011 and a similar expansion is forecast for 2012.

Further Reading

- You can view the QMS Pig Market Report by clicking here.