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Prospects still positive for German market

The mood on the pig market has noticeably brightened in recent days, reports ISN. An increase of 11 cents in just two weeks is proof of the upturn.

12 August 2019, at 12:53pm

ISN reports that the German market is experiencing a positive uptrend in prices.

Seasonal demand high in Germany

The demand of the slaughter companies has picked up speed and livestock marketers could not serve all requests promptly. This is not unusual at this time of the year.

Meat processors are resuming production after the summer holidays, tourists are returning and numerous family and town festivals are heating up the sausage and grilled meat demand.

North America feeling the pinch

Driven by prices, demand in China has been having an impact since spring. Pig herds continue to shrink due to African swine fever, and cold storage stocks do not last forever. Rabobank's latest estimates assume that sow herds will have halved at the end of the year compared to the end of the previous year. In particular, piglets are currently scarce and expensive, according to media reports. This indicates a further shortage of the slaughter pig supply.

The US is increasingly turning out to be a direct supplier after the trade war with China seems to have escalated completely. Even Canadian exporters are still banned from exporting China after growth promoters were found and other disagreements prompted the Chinese to take that drastic step. Canada ranks third, behind the EU and the US, in the world's largest exporters of pork. This offers very good opportunities, especially for European suppliers, to noticeably expand exports in the coming months. Another positive sign is the new approval round for German slaughter companies for the Chinese export.

Read the full report here.