EU pig prices: coronavirus uncertainty pressures producers and pulls prices down
Due to the uncertainty caused by the COVID-19 pandemic, producers' willingness to sell has increased across the EU, while many slaughterhouses have been reducing their activity.
26 March 2020
2 minute read
By: ISN reports that initial uncertainties among EU market participants has led to noticeable price reductions for pigs, however, the markets now appear to be returning to normal.
The German market price continues to lead, quoting a decrease of 7 cents and raising the bar significantly for price reductions in other countries. The current quotations are accepted by all market participants and it is understood that discounted prices are off the table.
The new Spanish quotation falls behind the steady Danish market prices due to the recent price decline. Denmark now is the front-runner once again among the five EU member countries most important in pig production. The Dutch quotation falls back behind France.
Consumers are continuously changing habits globally, eating out less and demanding more in supermarkets to prepare their meals at home. Inside the EU, logistics and personnel recruitment continue to be the biggest challenges facing the pork production industry.
It is reported that trade with China is picking up speed which will also change market structure in coming weeks.
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.
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ISN
