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EU pig prices: meat markets under pressure in week 19

The effects of the COVID-19 crisis are becoming more apparent and prices are showing a downward trend across the borders, albeit with widely varying intensity.

8 May 2020, at 11:21am

ISN reports that the decline in live pig prices this week ranges from 4 cents in Denmark to 12 cents in the Netherlands. The price spiral on the meat market took a rapid turn downwards this week, the effects of which are being felt by many.

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

According to a report by boerderij, the Westfort slaughter company had recently put considerable pressure on the listing in the Netherlands by announcing a 15 cents lower payout price for the Beursprijs (stock exchange) prior to the listing. Ultimately, the Dutch price dropped disproportionately compared to other EU countries. Slaughterhouses in Germany are also reducing slaughtering due to low demand.

Slaughterhouses in the USA have taken further hits and the situation has worsened. Slaughter numbers have hit record lows and prices have plummeted with the reduced number of workers and closures. There is now serious concern over the security of supply. The international competition between pork exporters has increased noticeably. Now it remains to be seen how the latest regulation by US President Trump will play out.

The latest announcement by the EU Commission on a trade agreement between the EU and Mexico offers hope in the medium term. Mexico is a major importer of pork. Within the EU, the effects of the first easing of the coronavirus measures on demand will soon be felt.