February 18, 2008

EU pork producers in crisis, losing EUR35 per animal

European Union pork producers are losing EUR35 per market animal raised due to spiralling feed

 prices and lower meat values, EU farmers' unions said in a statement Friday (February 15).

Pork producers are in an "unprecedented crisis," the Committee of Professional Agricultural Organizations, or COPA, and the General Confederation of Agricultural Cooperatives, or COGECA, said.

The cost of meal used to feed hogs has risen almost 50 percent in recent months, but pork prices have fallen by 8 percent year-on-year.

"If nothing is done, we expect up to 20 percent of producers to go out of business in the next 6 to 10 months," said COPA President Jean-Michel Lemetayer.

Lemetayer added that if this occurs retail pork prices would "skyrocket".

The unions said EU market management tools, such as export refunds and storage schemes haven't been enough to tackle the problem.

In addition the unions said they fear meat currently in the storage system, and due to be placed back on the internal market in March, will weigh on pork prices further.

The unions also call on the European Commission's help for better feed availability, by authorizing the use of processed animal proteins and improve the EU authorization procedure for genetically modified feed grain.