Pig prices rise in Spain

 German producers hope for growth of quotations in the second half of June. Spain and Italy are already benefiting from rising demand from tourism.

The supply of slaughter pigs in Germany and neighboring countries in mid-June is small in terms of livestock and roughly corresponds to moderate demand from slaughterhouses. “Demand and supply are increasingly balanced with each other,” the Association of Livestock and MEAT Producers Groups (VEZG) said, leaving its key slaughter hog price unchanged at €1.80/kg carcass weight (SG) last Wednesday.

In normal calendar weeks - without the loss of slaughter days associated with the holidays - the significantly lower supply of animals after the reduction in stock would probably already lead to higher producer prices. Market participants reported that the pre-existing surpluses have largely disappeared and that the animals can be sold more quickly again. With the end of the holiday weeks approaching and the prospect of more BBQ-friendly weather, growers have begun to hope that prices will inevitably rise. This was also reflected in the increase in the upper value of the range of quotations by 2 cents to 1.82 euros / kg.

According to Agrarmarkt Informations-GmbH (AMI), pork trading activity picked up slightly just before Whitsunday; thereafter, the need for restocking led to a revival of business. However, as a clarification, market watchers from Bonn also reported that all goods were in stock in sufficient quantities, so that there were no significant upward price adjustments in the sale of pork cuts. The Association of Agricultural Producers (VLV) in Austria also sees a change in sentiment as prices rise in the post-Corpus Christi market. Currently, however, due to the cancellation of holiday slaughter days, the number of pigs ready for sale will be between 10 and 15% of the weekly volume. However, the VLV quotation remained stable at €1.94/kg SG.

In Belgium, France and Denmark, the quotations of slaughter pigs also did not change last week. In Belgium and France, the supply of slaughter animals is noticeably reduced, and quotations are expected to rise in the second half of the month. In Denmark, stable sales of pork in the EU internal market were reported, but this did not yet give room for price increases. However, it is quite possible that this will soon change in the main tourist countries, and then pork products, which are in demand, can quickly rise in price.

The effect of summer tourism is already being felt in Italy. The national quotation for slaughter pigs increased by 3.7 cents/kg live weight (LG). This was also facilitated by a smaller livestock and a decrease in slaughter weight. This can also be seen in Spain, where, according to Mercolleida, slaughter weights have fallen by 1.9 kg over the past four weeks and stocks are almost 15% below their level at the beginning of the year. In addition to seasonal causes, sow HEALTH issues in early 2022 are now cutting the supply of fattening pigs. The Spanish benchmark edged up 1.8 cents to €1.58/kg LG last Thursday. The holidays had little effect on the live meat market, as slaughter capacity would have been limited anyway due to the low supply of live meat, Mercolleida said.

In the week ending June 5, slaughter pig prices remained at a high level on the EU average. According to the Commission in Brussels, class E animals cost 185.84 euros/100 kg SG on average across member countries, up 0.42 euros or 0.2% more than the previous week. This was facilitated by relatively high quotations in Romania (6.2%) and Ireland (5%). In the Czech Republic, Luxembourg, Croatia, Hungary and Slovenia there were slight increases in prices, up to a maximum of 0.4%. Prices remained virtually unchanged in Germany, Austria, Denmark, France, Spain and the Netherlands. In contrast, in Lithuania, Italy and Estonia, the decline ranged from 0.8% to 1.3%. Slovakia reported a price cut of 1.6%. For Belgium, the Commission reported a 3.3% drop in slaughter pig prices for the reporting week, although this is not in line with payout prices.