Predictions that price rises seen last week would hold steady or continue to rise have proven half right. In this week's mature pigs market, quotations in southern Europe rose in line with industry analysts' expectations; however, price cuts in Germany have thrown the central European price structure into turmoil, according to pig industry group ISN.

The organisation said on Tuesday that large slaughter companies had flexed their muscles and depressed prices, in spite of beneficial market conditions for producers which led to a price increase last week. ISN said, "The German quotation went down a little, although the market situation is well balanced," and the price dip is incongruous with the wider European atmosphere.

The cut affected producers in the Netherlands also got into this maelstrom, who suffered a 4.7 cent reduction after German prices were published. Other states remained unaffected. Prices continued to move sideways in Denmark, Belgium, Austria and Ireland.

In Spain and France, prices rose, widening the price gap between the southern and central states.

ISN said the tough conditions are likely to continue, given the processors' power. The group said, "The discounted prices charged by some slaughter companies unsettle the market strongly. Panic selling which is often done by the pig feeders in market situations like these is not observed this time. This indicates very limited quantities of live pigs on offer."