February 2, 2012

EU pig slaughterings forecast to decline this year

Despite a 2% growth in EU pig slaughterings during the first three quarters of 2011, a downward trend is expected this year as sow herds have contracted in a number of member states.

In 2011, the UK and Poland had the strongest growth rates of nearly 7%, while production in Denmark rose by 5%, according to a report prepared by QMS's Iain Macdonald and Stuart Ashworth. Expansion also took place in Spain and Germany where slaughterings increased by 3% and 2% respectively.

Most French pig producers failed to make a profit in 2011. Losses were made as increased feed costs pushed production costs above EUR1.50 (US$1.98)/kg. Brazil too witnessed a decline in pork exports. In December, three Brazilian processors were permitted to resume exporting pork to Russia. Hence there is industry optimism that further access may be granted as 2012 progresses.

After the US recognised the Brazilian province of Saint Caterina as the only FMD-free state, it gave the latter's pig sector a boost. The FMD-free status was recognised 14 months ago, but due to worries, this was delayed.

According to USDA census, the US pig herd grew by 2% in December 2011. However, the breeding herd expanded at a more modest pace, indicating a mere 4% growth. On the one hand this indicates a substantial improvement in productivity, but on the other hand it suggests that producers are exhibiting caution. Abattoir throughputs rose 2% during 2011 and a similar expansion is forecast for 2012.