Italy's pig processing capacity is down by 30%
The Italian pork sector is hardly hit by the coronavirus crisis. Italy is a significant importer of pig meat from other EU member states but, for this time of year, the market has dropped to the lowest level in the last decade. "The situation in Italy is reportedly very bad, with processing capacity reduced by 20-30%, and cold stores filled. Ham processing is particularly stalling. Pig prices have collapsed; the 160/176kg live price had fallen to €1.15/kg in the week ended 8 May, compared with €1.60/kg at the start of March (-28%). Current prices are the lowest at this time of year since 2010," reported Bethan Wilkins, Senior Analyst for AHDB.
However, Italy is not the only European country to suffer from the COVID-19 crisis. Market conditions are deteriorating fast in Spain, Poland and partially in Germany.
Reports indicate the market is Spain is worsening. Although throughput has apparently been reduced, moving stocks of meat already accumulated is reportedly challenging. Prices have dropped 12% between the end of March and mid-May.
"Wholesale markets in Spain seem to be more severely affected than elsewhere in Europe though. German boneless hams and belly cuts are still trading at prices above 2019 levels. However, Spanish bellies are now similar to 2019 levels, while round cut leg and rindless picnic shoulder are both at a discount to last year.
Spain has had one of the strictest lockdowns in Europe. However, there are now plans to partially reopen schools from 26 May. Bars and restaurants are also set to reopen from 10 June, but only with 50% capacity due to strict social distancing rules. How much this supports demand remains to be seen, particularly as the summer holiday season will almost certainly be disrupted to some extent," said AHDB.
Poland, who is a net exporter of pig meat but very highly dependent on the EU single market, has seen prices dropping 20% from €199.41/100kg at the beginning of March to €158.53/100kg in May and, considering the fact that foodservice sector is to remain closed (except for deliveries), the plunge could go deeper over the next few months.
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