In many EU member countries, the pig prices reached new annual highs this week, according to German industry group ISN. Throughout the remainder of the bloc, prices remained steady.

Continued scarcity of pigs mature for slaughter is helping maintain balance in the markets. In Germany, stocks and exports of pigs mature for slaughter and piglets have never been higher than they were during the first months of 2012, ISN said. This means German slaughter houses are now suffering the effects of scarcity and prices are rising as a consequence. Quotations rose by +3 cents this week in Germany.

In the wake of the German quotations, price increases were also seen in the neighbouring countries including Austria (+2 cents), the Netherlands (+3 cents) and Belgium (+3 cents). Scarce supplies are additionally emphasised by low slaughter weights of pigs on offer; this is particularly the case in Southern Europe, which has been under drought this year.

In the UK, the National Pig Association has warned that price rises are insufficient to absorb the rising cost of feed and other essential inputs. The NPA has warned that, unless buyers back farmers, scarcity and high costs could become the norm next year. The organisation said these costs would inevitably be passed on to consumers, threatening the industry’s viability.

In Spain and France, markets have stabilised following clear price increases over the summer and during the holiday season. In Denmark, too, prices remained unchanged. ISN said that the continued balance of supply and demand should translate into steady or rising prices for most European producers for the time being at least.

Tweet