Although German analysts with organisation ISN said most quotations on the EU mature pigs market show upward or sideways trends this week, the German price dropped by 3 cents. Prices in Germany can have an effect on returns for producers in surrounding countries, so knock-on effects are possible.

However, producers in Belgium enjoyed an increase and Austrian prices remained steady. Prices also increased marginally in France and Spain.

ISN said, "Some market-leading German slaughter companies once again used discounted prices successfully to exert pressure on the producer price. This was justified by large stocks, weak exports, a scanty meat business and damage caused by the horse meat [scandal]."

Meanwhile, EU authorities have lumbered into action against producers in a number of EU states who are still flouting new pig welfare legislation that came into force at the beginning of the year. Following the delivery of formal notice letters to nine states which remain in violation of welfare laws, the Commission has given the states two more months to respond to the notice.

If a response is not forthcoming or unsatisfactory, the Commission could then refer the case to the European Court of Justice.