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EU pig prices: price rally continues with booming demand for most markets

The price rally continues on the European. Almost all quotations have improved again this week.

28 November 2019, at 11:28am

ISN reports that Denmark was the only exception to the improved pricing again this week. The booming demand for pork in Asia is impacting the annual principle of pricing. The spread of African swine fever in Asia has led to a rather unsatisfactory demand for pork imports.

Business is also picking up speed within the EU. On the one hand, the Christmas business is gathering pace noticeably. In addition, processed goods are in high demand but not always available in sufficient quantities. In addition, pig stocks in the EU are declining and are thus causing a shortage in raw materials. Ultimately, pigs ready for slaughter are in great demand throughout the EU.

European pig price comparison by ISN
European pig price comparison by ISN

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: 57 percent lean-meat-percentage; farm-gate-price; 79 percent killing-out-percentage, without value-added-tax. © ISN

This has an impact on prices indeed. The price increases are observed to range from a corrected 1.5 cents in the UK to a substantial 7 cents in the Netherlands. The Danish quotation is the exception and, as announced, remains at the level it has reached. The moderate price increase reported on from France is attributable to the fact that the backlog supply from the beginning of November has not yet been completely eliminated.

All in all, the prices are moving closer together. The gap between Denmark, ranking first in the European price structure of the five EU member countries most important in pig production, and the Netherlands, ranking last, is currently a corrected 7.6 cents. Two weeks ago, it was still 10 cents more.

Read the full report at schweine.net.