Pig producers in Germany are celebrating this week, as the pay rise promised by industry groups for weeks has finally arrived.

Quotations are going up all over Europe, according to ISN, after the mature pig market showed a "tentatively upward trend in many countries last week". Although, in ISN's words "the German slaughter companies balked vehemently at a price increase," the arrival of warmer summer weather this week increased demand, which has driven up prices.

The leading German quotation went up by 8 cents, a decisive signal for other mainland states. Given the clear price increase (the highest recorded this calendar year), Germany has shifted up to third in the ranking of major European producers. Germany overtook France and Denmark, though Spain remains top of the list.

According to ISN, demand looks set to remain steady, whereas supply is scarce in many European producing nations, meaning price increases are set to continue. The group said on Tuesday, "Further price increases are expected to occur as matters stand."