Pork prices have eroded in Germany and the Netherlands
Pork prices in Germany and the Netherlands have dropped in the last 8 months from €1.35 to €1.14 and €1.29 to €1.04, respectively. That situation complicated the whole single market in the EU, according to Mercedes Vega, General Director for Spain, Italy & Portugal, Genesus Inc.
"Even though there is now more demand than supply and the usual summer lower weights, the price has not risen due to lower pig prices in other European countries like Germany, France and the Netherlands. Traditionally fall brings lower prices, but this year all the schemes are broken, and now prices are expected to go up given the market situation.
The major difference between Spain and the rest of Europe is that Spain did not have closures of packing plants by the Covid-19. There has been processing limitation due to sanitary measures implemented, offset by the processing capacity growth observed earlier in the year, great efficiency, and closure of plants in the north of the EU. From January to June 2020, despite the pandemic, the processing of hogs has increased by 3.19% in the number of hogs and 5.5% in weight," said Mrs. Vega.
As far as exports are concerned, in the first six months of 2020, "Extra-Community Exports" of the Spanish pork sector continue to exceed “Intra-Community Exports” in volume and value (54.5% in volume and 51.4% in value).
More than 74% of exports (volume and value) are distributed among eight countries: China (first place), followed by France, Japan, Italy, and Portugal.
In 2019 - 663,892 tonnes of Spanish pork products were exported to China (27.2% of exports) with a value of €1.44 billion (23%), while this year just during the first half of the year 539,627 tonnes were exported with a value of €1,19 billion. All this shows that 2020 is a good year for the Spanish pork sector, though there still is a lot of uncertainty because caused by ASF and the Coronavirus pandemic that is devastating the planet.
In Italy, the market continues with a sustained price increase. The certified pigs for Parma ham (176 kg average live weight) are at 1.468-1.498 €/kg. Pigs out of Parma certification are priced at 1.286-1.316 € per kg. The 25kg feeder pig is priced at €64.
"There is a very dynamic demand, but supply is totally insufficient to cover it. The meat market is in a strong recovery, although the packing plants are still not making any money. That is why there is a lot of resistance to accept the maximum rise that producers are asking for," added Mercedes Vega.
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