February 5, 2014
EU 2014 pig production to remain stable
Ferneij, a pig economist at the French institute IFIP, mentioned that the average pig price in the EU was €1.76 (US$2.40) per kilogramme. He expects that pig prices will remain relatively high in 2014, partly as a result of exports to China, thus giving a boost at the end of each year as a result of the higher demand for the Chinese New Year.
Despite drop in 2013 pork output, the production volume is forecasted to remain stable on average in the EU, but large differences can be seen between EU countries.
Ferneij also mentioned the impact that the current Russian ban of meat has on EU exports of pork. "Around 3.5% of all EU production goes to Russia (around a quarter of all EU pork exports). If Russia continues to close the border for EU meat for a longer period, it will have huge consequences. Large volumes cannot be transported to Russia, which already led to a US$0.06 decrease in the German pig prices".
Although the exact growth potential is difficult to forecast, China remains an important export market for EU pork. "We know that Chinese pig farmers have a lower appreciation of technical results compared to the European pig sector. Piglets produced per sow are around 14, mortality and feed conversion is high, and the sector struggles with disease outbreaks and environmental issues. Although they desire to be self-sufficient, such possibility is still far away and until then, they rely heavily on pork imports", explains van Ferneij.
