EU pig production up 2% last year

The EU market produced 23.4 million tons of pork, but in some countries there are signs of a decrease in the number of pigs.

EU pig producers ended 2021 with a 2% increase in production, reaching a total of 23.4 million tonnes of pork. Trade slowed down in the second half of the year, mainly with CHINA. Production fell in Germany (-3%) year-on-year, remained stable in Poland and France, but rose in the Netherlands (+3%), Denmark (+8%) and Spain (+4%). This has given Spain the number one pork production in Europe with a production of 5.2 million tonnes, most of which is exported, with China a very important market. By 2022, however, Spain must look to other EXPORT markets around the world as China has announced that it will be self-sufficient in pork this year.

“We should be wary that the current spike in EU hog prices may not be long-lived. Although the EU pig herd declined year-on-year in December, much of the fall was in heavier pigs, with relatively smaller declines in the youngest piglets. It is also believed that some pigs are being held by pig farmers in anticipation of higher prices, further reducing current supplies by delaying slaughter. If reports of good supply of pork to the EU market are also correct, these factors together will mean future weakness in EU pork prices,” said Duncan Wyatt, AHDB Lead Analyst.

However, on the other hand, the increase in demand in 2021 as a whole is likely to be sustainable and could go a long way in absorbing products that until recently were destined for China . To do this, it is enough for demand in the EU to return to the levels observed at the beginning of 2019. The European market has consumed this product before and may do so again, although one must be aware of the widespread price increases and consumer willingness to pay. According to the expert, reports so far show that higher hog prices and other higher supply chain costs are not yet holding back pork sales.