EU pig prices down in 2009

 

 

For the six countries with most pigs in the EU, 2009 pig prices were 4-11% lower as compared to 2008, the annual price comparison of the German pig organisation ISN showed.

 

For these countries, Spain, Germany, Poland, the Netherlands, France and Denmark, this equals EUR0.06 (US$0.08) to more than EUR0.16 (US$0.22) per kg slaughterweight less. In total, these countries keep 68% of all pigs in Europe in 2009.

 

The figures are based upon price data, collected by ISN throughout the year from thirteen EU member states. The prices are corrected to a price for 1kg slaughterweight per standard pig.

 

The highest price in 2009 fell in summer as at that time, the average price was EUR1.36 (US$1.92)/kg slaughterweight - a year-on-year 10% difference as in 2008 the maximum was EUR1.47 (US$2.07). Lower feed costs may have put less strain on pig producers, but these did not compensate for lower prices paid for pigs.

 

Spain showed the least price change, with only a 4% reduction. Germany came second with 'only' a 10% price decrease. Taking monetary fluctuation into account, prices paid per finisher of 94kg have fallen over EUR13 (US$18.35).

 

In 2009, Spain came at number 1, with Germany and Poland at the number 2 and 3 slots. German and Polish prices ended up being reasonably similar over the whole year 2009, although the Polish pig prices lost most throughout the year (-11%).

 

Germany has remained the leading pig price index in Europe. Just like in previous years, the Dutch pig price index referred to the German prices, being two cents lower than in Germany. This way the Netherlands can control their own market and prevent too many Dutch exports to Germany.

 

Meanwhile, France and Denmark ended up in the last regions of these six countries. In Denmark, prices were about EUR0.08 (US$0.11) lower than in Germany and even almost EUR0.17 (US$0.24) lower than in Spain. Prices paid per pig are therefore almost EUR16 (US$22.58) less than in Spain. This difference between the lowest and the highest country thus grew in 2009.

 

As a reason, Danish pork processor Danish Crown needs a mention, as it has long-term contracts with its pig producers.

 

This year, Germany is expected to have a self-sufficiency rate of 110% and thus focus on exports in 2010.

 

In the whole of Europe, more pig production is accounted for this year. Exports to Russia are expected to be lower in January in comparison to previous months, but as from February a rise is expected, as increased consumption cannot keep up with own production.