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Genesus Global Market Report: EU and Spain, January 2020

The 2019 Pork Spanish market had closed with values not seen in the last six years.

6 February 2020, at 11:05am

In 2014 the year started with €1,253/kg live-weight (61.68¢ US /lb), which was already perceived as a very high value! Live-weight averaging at 109.33 kg (241 lbs) for the same year.

2019 closed at €1,490/kg (74.41¢ US /lb) and 113.81 kg (251 lbs) live-weight. The 2019 average market price of € 1,350 / kg live-weight (67.42¢ US /lb), is the highest registered in the last 5 years. For 2018, the yearly average was € 1,1340 / kg (56.64¢ US /lb) live-weight.

Germany has closed 2019 with a yearly average of 1.34 € / kg (56.64¢ US /lb) live-weight.

Other observations from 2019

Sow inventory has increased compared to 2018 by 1.6 percent. As of June 2019, there were 2,537,870 sows.

  • Total pig inventory has increased with 1.32 percent. As of October 2019, there were over 44 million heads.
  • Slaughter capacity has been increased too, especially with the entry into operation of the new facilities of the Pini Group, which is already processing around 70,000 pigs per week.
  • Feeder Pigs. 2019 started at € 38.20 / 20kg pig ($42.04 / 44 lbs pig) before premiums, and closed at € 59.5 / 20kg pig ($65.48 / 44 lbs pig)
  • According to the SIP Consultors forecast, the production cost for 2019 would average at €1.08 / kg of carcass ( 53.95¢ US /lb) - June 30th closed with this value. The same forecast was expected for year-end.
  • Exports up 12.9 percent compared to 2018 - October 2019 closed at 2,003,830 tons vs. 1,774,804 tons same period 2018.

Spain has 48 processing establishments authorised for export of meat and pork products to China. Distribution of these exports (excluding live animals):

  • China - 502,388 tons representing 25.10 percent of total exports
  • (an increase of 83.10 percent compared to same period of 2018)
  • France - 255,720 tons or 12.80 percent of total exports
  • Italy -153,057 tons or 7.60 percent of total exports
  • Japan - 117,814 tons or 5.90 percent of total exports
  • Portugal - 101,476 tons or 5.10 percent of total exports

The following graphs show the evolution of exports since 2015 and the evolution of 2019 compared to 2018.

With all this, we can state that 2019 has been:

  • Excellent for the Spanish pig producer, and for the Spanish industry, especially for those authorized to export to China
  • Average for those with a good domestic or export market, but unable to trade with China.
  • Bad for all those with pork meat as their raw material.

For 2020, Spanish market is optimistic, against the fact that ASF (African Swine Fever) it still a treat for Europe. This year price started at € 1.49 / kg (74.41¢ US /lb) live weight, compared with € 1,038 / kg (51.84¢ US /lb) live-weight compared with same period last year.

As new year prices are going strong, there are rumors of expansion, but China and ASF still cast a shadow of uncertainty over the industry.

“Let´s talk about Pork”

Representatives of the Capa Blanca Española Interprofessional (INTERPORC), INAPORC France and Aligrupo & Agrupalto Portugal have joined to advance the development of a promotion, information, and communication campaign for the years to come.

This project is funded by the European Commission within the framework of the EU Promotion Plans and will promote European products, including pork meat and pork meat products.

It aims to raise awareness among European consumers about the benefits of pork and the reality of the European model of pig production, which complies with the most demanding regulations in the world in matters such as food safety, traceability, respect for the environment or animal welfare.