September 3, 2007

Germany's pig farms in crisis

It could not have been a worse time to be a pig farmer in Germany.

The past ten months have seen producers averaging a loss of EUR 7 per weaner sold with the losses even greater in July, when producers lost EUR 15 to EUR 20 per weaner sold, according to the MLC's European Market Survey.

A number of factors such as high feed and energy costs, along with fiercer competition from Denmark and the Netherlands has resulted in the lower prices.

The situation is not much better with fatteners. Fatteners have also lost on average EUR 15 per slaughter pig since the beginning of the year.

Managers of the German pork industry agree with the pig farmers that higher prices for piglets, fatteners and end product are needed to stay in business.

The number of German fattening farms and pig producers would drop sharply next year if the crisis remains, top managers from Vion, Tönnies, Westfleisch said at a crisis meeting.