December 2, 2010

Denmark faces growth stagnation in live pig exports

The growth of Danish live weaner and finisher exports will come to a standstill in 2010 and 2011, analysts said.

In finisher exports, there may be decline and this will most probably continue, analysts said.

Two causes can be identified for the discontinuation of the growth of finisher exports. German processors have switched to a different payment system, AutoFom, and the total number of pigs in Denmark has also been decreasing.

The new automated meat classification in slaughterhouses leads to the delivery of heavier pigs and from that point of view, Danish pigs are not as appealing, AMI said. The total supply of pigs was a result of the bad economic development in the Danish pig sector which was 6% less in an on-year comparison with October 2009.

In August and September, finisher export decreased to about 74,000 while in the previous year, the same months showed over 180,000 exported finishers.

LF mentioned a third factor: As the carcass prices offered by Danish Crown have come closer to those offered by the German competitors, making exports less lucrative.

Piglet exports will continue to grow but it is not as strong as previous years. From January to September 2010, over 5.6 million piglets were exported. It is an increase of over 300,000 animals in comparison to the same phase in 2009. In total, this type of live exports stopped at 7 million.

If the trend continues to happen in the remaining months, the growth will end up to be 500,000 at maximum. In 2011, hardly any growth is expected.