August 1, 2017

EU pig prices 7% higher than 2016

Despite dipping in recent weeks, European farm gate pig prices remain some 7% higher than they were a year ago, according to Quality Meat Scotland (QMS).

It said that major northern producers such as Germany, Denmark and the Netherlands have all seen producer returns fall in recent weeks. In contrast Spain and Italy, which have a seasonal influx of tourists, have seen prices stabilise or climb slightly.

"European farm gate prices often plateau through the summer holidays before dipping in late September so this earlier dip in price may flag some changes in the supply and demand balance across Europe", QMS noted.

While EU production is currently at levels similar to those last year, it is forecast to be higher than 2016 in the final quarter of 2017.

European trade data showed a slowdown in exports, which dipped around 6% in the first quarter. The significant 23% decline in EU exports to China was not offset by growths in trade to Japan, South Korea and the Philippines.

Chinese trade data also reported an overall decline of 23% in imports in May, and Chinese wholesale pig meat prices have fallen around 20% since the Chinese New Year at the start of February.

Consequently, according to QMS, with a slightly better supplied market and lower Chinese demand leading to more competition in export markets, European producer prices have started to come under some pressure.