August 14, 2008

Global pig prices have improved due to low slaughterings, low stocks, large export volumes and high seasonal demand for pork, according to August 2008 Whole Hog Brief.

The report said the average producer price increased 5.5 percent over the month to the last week of July, and more than 15 percent on-year to EUR 172.68 per kg. 

The highest price increase was seen in Poland where it climbed more than 12 percent to EUR 193.57 in June, the report said, adding that EU, Canadian and US prices have been moving in the same direction.

The report said pig prices may remain positive for 12 months before starting to fall again. However, the report warns that just as producers will react to rising feed and energy costs, consumers will be reacting to changes in incomes and prospects of inflation.

In Germany, Hungary and the Czech Republic, prices have increased about 20 percent on-year to around EUR 183, while the summer and barbecue season are expected to boost meat demand.

Meanwhile, Canadian pork exports rose 6.2 percent to 446,502 tonnes on-year during January to May 2008, despite a temporary ban imposed by Russia. Canadian pork's largest importers were the US and Japan.

US pork exports also jumped 61.9 percent or 300,000 tonnes on-year to May, with the Japan and Mexico as the main markets although shipments to China and Hong Kong had increased, according to the report.