August 20, 2008

Pig prices in key EU pig producing regions are recovering from the recent slump.

Pig producers in Germany, Spain, and the Netherlands have been receiving pork prices about 10 percent higher in the past two months amid a significant fall in pork production across the EU.

Danske Slagterier's chairman, Bent Lassen said this trend gives a promising outlook for the industry.

Considerable sow number reductions of 8-13 percent in Denmark, Spain, the Netherlands, Poland, Romania and Hungary could only push prices up, Lassen said.

Lassen said it is impossible at this stage to foresee the consequences of the recent Danish pig count, which showed a reduction of pregnant sow numbers of 8 percent, as it is unknown how many Danish farmers have stopped production or just replaced their breeding stock.

Yet despite the price recovery, Danish pig farmers are reportedly unhappy at the continuing low prices offered by leading processor Danish Crown.

Torben Poulsen, chairman of the Association of Danish Pig Producers (DPP), said it is deeply frustrating that Danish pork price continues to be at the bottom of the list when compared to their rivals in other EU member states.