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EU Pig Prices: Prices Increasing, Heading for New High

21 August 2012, at 9:32am

EU - Throughout Europe, the pig slaughter markets appear in an extremely positive mood. Apart from some exemptions, mark-ups more or less tend to be between three and five cents.

Despite the public holidays that were celebrated in Austria and France last week, the mood proves to be positive in these countries, too.

The prices went up by five cents during the auction held in the region of Brittany (France) and in Austria.

Remarkable reports from Spain said that the price there did not go up in June and July, against the usual price development. However, the price is now improving again thanks to the price increases occurring in Germany.

Prices in Denmark and Sweden remain unchanged.

In Great Britain, the price went down slightly – quite contrary to the trend observed in the rest of Europe.

With the increase on Friday last week, the German prices were alike with the peak level of August 2008. So, the highest price since 2001 could be achieved now. In other European countries, the highest pig prices in 10 years were also reached.

The quantities on offer remain scarce in almost all other countries. Furthermore, the high summer temperatures now prevailing in large parts of Europe make the daily growth of fattening pigs stay low, thus causing a supply shortage.

From the meat business, vivid sales are reported, forwarding the general price increases on the live-animals’ market to the meat processing companies and to food retailing. In addition to that, positive signals are set for meat exports towards Russia.

Trend for the German market: For the days ahead, the market participants also expect the mood to remain positive on the pig market. The quantities on offer will hardly be sufficient to cover the demand from the German slaughter companies as well as from Polish importers. So, the producer prices at least are expected to remain steady.