German pork prices: is the decline in line with the market?
ISN reports that the current slaughter market situation is proving tough for farmers: with a tight offering, processors hitting a 10-year low, prices continue to fall.
ISN (Schweine.net) reports that the market is quiet and a major reason for this is the summer vacation season. A common report from the German processing industry is that demand is currently very low.
Another cause for low demand may be the catastrophic economic results of the sausage and processed meat product manufacturers in recent weeks. According to ISN, the industry still finds it very difficult to enforce the necessary price increases in food retailing.
It is also believed that weak export opportunities may be responsible for the poor prices.
The question is: is the rest of the market feeling the pinch? It appears not. A price drop of 9 cents is beyond what is generally expected, even when there is an excess of supply.
Read the full report from ISN here.
