June 23, 2004

Higher Czech Farm Gate Pig Prices To Make Pork 20% More Costly

Czech domestic consumers can expect pork prices to grow by roughly 15-20 pct. This is due to higher farm gate pig prices which have leaped from Kc28 up to the current Kc33 per kilogramme in live weight after the country's EU accession.

"The raw material is in short supply," Jan Veleba, chairman of sales cooperative Centroodbyt, told journalists.

Moreover, trade barriers fell after May 1 and breeders were making exports in particular to Germany and Austria, as well as Italy.

Veleba put the shortfall on the market after the exports at 20,000 to 30,000 animals, but exact figures are not yet available.

A higher price of live pigs in Germany is yet another reason. It now stands at Kc37.30 per kilogramme in live weight and is likely to grow further next week.

"Processors can either reduce production or pay more," Veleba said, adding that price conflicts with many processors are now over.

Since the beginning of the year, these conflicts have pushed prices of pigs down to such extent that breeders lost an estimated Kc1.5 billion in four months.