June 22, 2021

Drop in German pig prices following declining Chinese prices



German pig prices fell sharply last week as a slump in Chinese prices undermined international markets, industry sources said on June 18.


German pig prices fell to €1.48/kg (US$1.76) slaughter weight from €1.57 (US$1.87) the week before June 14 onwards, the association of German animal farmers, VEZG, said.


China's pork and hog prices have fallen over 50% so far this year.


"The impact of the price fall in China can be felt worldwide," said a market report from German slaughterhouse and meatpacker Toennies.


US hog futures also dropped by their daily limit on June 17.


German pig prices have firmed so far in 2021 after being hit last year by widespread import bans on German pork by China and other countries after African swine fever (ASF) was found in Germany. This led to trade displacement, with other EU countries including Spain raising exports to China, while German sales inside Europe have increased.


"The European pork market is dependent on exports, especially to China, so falling Chinese prices are reflected here," a German trader said.


German farming association DBV said the positive picture in the domestic pork market should support prices.


"Factors such as the tight supply of slaughterhouse pigs, the current European football championships and the good barbecue weather offer the best preconditions for a rising market," DBV said.


Major sporting events in the summer traditionally increase pork demand in Germany for barbecues.


- Reuters