February 26, 2021

German swine prices recover from impact of ASF, COVID-19

German swine prices rose further this week as markets recover from the impact of import bans on German pork and reduced slaughterhouse capacity, the association of German animal farmers VEZG said on February 24, Reuters reported.

Swine prices climbed to 1.30 euros per kilogram slaughter weight from 1.21 euros last week.

Prices had since risen from 1.19 euros in November 2020 when markets were impacted by import bans on German pork after ASF was detected. In addition, abattoirs and meat packing plants became COVID-19 hotspots last year, forcing slaughterhouses to cut capacity as the industry raised health standards.

"The remaining surplus capacity on the German slaughterhouse pig market is being steadily reduced and is often disappearing," the association says. "Demand is developing rapidly."

The association adds, "Demand in the German piglet market can hardly be met with the available supply."

According to one meat trader: "The market is strengthening again with optimism returning. German pork sales inside the EU are strong. The problem of pig congestion, of animals waiting to be slaughtered, is easing in Germany and also in Denmark."

The banning of German pork imports in September 2020 by China and other countries led to a trade displacement, with some European Union countries increasing their exports to China, while German sales to Europe increased.