Following on from a boost at the beginning of the European Football Championships, pig prices in Europe have split in two, according to analysts from German pig industry body ISN. In Germany itself, mature-for-slaughter prices have fallen by nine cents.  

However, in other countries, the picture is a different one. In Spain, prices are at a ten year high. In France, quotations increased by around two cents as a result of scarce supplies and constant demand. Italy is also reporting favourable conditions.

In many parts of Europe, supplies are lower than last year, though demand is, if anything, higher. In Denmark prices remain eight cents above Germany, according to ISN.  Danish crown last week signed a contract with China’s largest meat trading business, Shineway, through which Danish exports to China should increase considerably over the next months. The news follows similar contracts with UK producers announced earlier in the year following a trade mission by UK Farming Minister Jim Paice.

Nevertheless, some countries have been affected by Germany’s price slide; Austria and Belgium saw decreases of six and five cents respectively. ISN analysts said the influence large slaughter companies have on the market was made apparent by the price drops last week.

Analysts said, “By short-term reductions of the numbers of pigs slaughtered at a few major slaughter companies, the capacities could not be run to full extent for as long as a week, but along with the relevant promotion, the price level could be lowered considerably.” They also said price reductions seen in Germany could be regarded as a “tit-for-tat response by many market participants to the previous week’s price increase rather than as the result of supply and demand.”

ISN said its assertions are backed up by the increasing distance between German prices and quotations coming from other major pork exporters such as Spain or Denmark. A spokesperson for the German industry body said this morning, “It is a regrettable fact that German slaughter companies obviously strive for increasing their margin by lowering the purchase prices in the first place instead of raising the value creation in sales. Denmark, for example, shows that there are also other ways.”

ISN said that, as a result of the major slaughter companies reducing the quantities of pigs slaughtered in Germany, there is a current oversupply of pigs from last week, which even today have not all been sold. The organisation was loath to make any predictions regarding conditions in the coming weeks.

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