April 22, 2017

EU pig meat production in Jan. unchanged as supplies tighten

EU pig meat production in January remained relatively unchanged at 1.96 million tonnes, compared with the same month last year, AHDB Pork reported, citing the latest data from Eurostat.

However, it added, an additional working day this year meant that, per working day, production was actually down 5%. "This supports industry sentiment that supplies have been tightening within the EU this year, a situation that has become increasingly apparent in recent weeks with pig prices rising sharply", the pork division of the UK Agriculture & Horticulture Board said.

Pig slaughterings were also relatively stable on the year in January at 21.29 million head, which translates to a 5% fall in supplies on a like for like basis.

Many of the key producers reported a decline in output in January 2017 compared with a year earlier. Germany reportedly produced 1% less, while Polish output was down 6% and Italian production was back 7% year-on-year. Particularly sharp declines were also seen in Denmark (-20%) and the UK (-13%), though these figures have likely been influenced by different reporting periods being used in the two years.

Early figures for February from selected member states also indicated a decline in production year-on-year. Nonetheless, given demand for pork within the EU is reported to be subdued, the rising pig price suggests production has likely remained below year earlier levels in more recent months.