High pig prices hamper EU competitiveness on world markets
Prices are supported by strong demand and tight supply
12 October 2022
1 minute read
By: According to the EU's most recent short-term outlook report, which is based on reflections of market experts within the European Commission's Department for Agriculture and Rural Development, high pig prices are hampering EU competitiveness on world markets.
Supported by strong demand and tight supply, EU pigmeat prices continue evolving fast at record levels: during mid-Jul-mid-Sep 2022, they were 28% above 2017-2021 average, year-on-year. This makes exported EU pigmeat relatively less competitive.
EU pigmeat exports to the UK are due to continue recovering (+5.3% in Jan-May 2022 year-on-year), whereas exports to China stabilise at 2017-2018 levels (-72% in Jan-Jun). To bring domestic pigmeat prices down and ease the market, the Chinese government released some pigmeat stocks. This move is not likely to mitigate the sharp reduction in EU exports to China.
EU pigmeat exports are being diverted to other destinations like Japan (+45% in Jan-Jun), the Philippines (+40%), the US (+35%) and Australia (+66%). Overall, EU pigmeat exports may decrease by 17% in 2022 and 3% in 2023.
EU pigmeat imports from the UK have not yet fully recovered: assuming a 30% increase in 2022, they would still be 29% below 2017-2019 average.
Overall, EU pigmeat imports are expected to increase by 27% in 2022 and 17% in 2023.
