April 19, 2006

 

Pork prices see-sawing in the EU

 

 

The latest cases of swine fever to hit Germany have caused uncertainties in pork prices in the EU market, with prices within Germany edging higher on tightened supplies but prices heading south in the UK on cheaper imports.

 

In Germany, pork exports have been banned due to a scourge of new cases of swine fever in the North Rhine region.

 

Live pig exports from Germany have also been banned and slaughter houses have been ordered to halt operations, affecting supplies from other EU member states who send their pigs to Germany for slaughter. 

 

According to German authorities, these restrictions will remain in place until May 15, thus disrupting cull sow and pig slaughtering.

 

The last major swine fever outbreak in the EU occurred in Holland in 1997.

 

Pork prices have fallen in France while prices in Germany has risen slightly and prices in Denmark remained unchanged. 

 

The lifting of movement restrictions on May 15 is expected to cause an upheaval in EU markets as large numbers of pigs are released onto the market.

 

Meanwhile, in the UK, pork is selling at barely breakeven prices and 5 percent lower than a year ago, according to Farmers Weekly.

 

British pork producers are increasingly feeling the heat from increased pork imports. Pork imports have increased by 35 percent since 2001, according to the latest report by the British Pig Executive (BPEX).

 

More than 70 percent of the pork imports were produced under conditions which would have been illegal in the UK, the magazine said.

 

Despite rising prices in the EU, pork prices in Britain fell in January and February as retailers pressured processors for cheaper supplies.

 

Imported pork is being sold at increasingly discounted prices. Prices of imported pork chops and leg roasting joints were about 20 percent less than similar British products, BPEX Chief Executive Mick Sloyan said.

 

Consumer research indicates British consumers remain very concerned about imports of pork and pork products that fail to meet UK pig welfare legislation, Sloyan said.