There is a split emerging in the mature-pigs-for-slaughter market, according to German industry body ISN. Although many countries, such as Spain, Denmark and Austria, have benefited from steady or even increasing prices in recent weeks, Germany has seen a drop in price, along with a small number of other countries feeling the gravitational effects of Germany’s price decreases.

ISN said the lower prices producers in Germany have been “triggered by a few major German slaughter companies at the end of last week.” The comment comes just a few weeks after the organisation first accused large processors in the country of acting to maintain artificially low prices. Analysts said the price gap currently opening up in Central Europe risks seriously affecting pig farmers, who have seen input prices for cereals and feedstuffs increasing inexorably.

On Friday, ISN accused processing giant Vion of “undercutting prices by their own price of €1.58.” Following Friday’s announcement, Westfleisch lowered its payments to match Vion at €1.58. Both companies said challenging export markets were responsible for the cuts, particularly with exports to Asia. They also blamed weaker than anticipated domestic demand

Southern European countries are enjoying supportive markets on good weather and tighter supplies, although in France pig prices are under pressure once more following a moderate increase last week. The pressure in France is being blamed on conditions in neighbouring Germany. Nevertheless, ISN analysts optimistically suggested Friday’s cuts may mark “an end of the downward spiral of pig prices” in the country.” They explained, “Quantities of pigs mature for slaughter on offer are by no means excessive and may thus be placed continually and promptly despite the slaughter companies’ complaining about the difficult meat business.”

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