December 14, 2011
French pork prices inch nearer to producer prices
French pork prices are moving closer to producers' costs, said France's national hog-breeders federation.
Producer prices have risen at a time of year typically "not very favourable" for pork, the Federation Nationale Porcine said in an e-mail statement. Prices have been insufficient to cover costs since feed expenses started rising in the summer of 2010, the group said.
Prices for live pigs rose 1.5% on December 8 to EUR1.367 (US$1.81) a kilogramme at the Marche du Porc Breton in Plerin in western France, up from EUR1.347 (US$1.78) on December 5 and compared with EUR1.112 (US$1.45) on-year. Paris-traded milling-wheat futures have risen 33% since the start of June 2010.
"The economy remains precarious for the producers whose treasuries have been depleted by successive crises," the FNP said. "That's why the producers will be vigilant in coming weeks about the evolution of the pork prices and the attitude of industry operators."
Breeders can ill afford a return to "inescapable situations" in which retail promotions of pork resemble "a liquidation" unrelated to production costs, the group said.