Butchers Press for Substantial Slash in Pork Prices
The European pork market is currently grappling with a challenging environment, as oversupply and trade tensions put pressure on prices. In Spain, the cost of slaughter pigs has once again decreased, reflecting the broader trend across the continent.
The International Meat Secretariat (ISN) has forecasted that pork production in Germany during the fourth quarter might be lower than last year. This potential decrease could help support prices and alleviate the strain from dwindling sales impulses.
However, the market remains characterised by a clear oversupply, making the marketing of pigs increasingly difficult. Prices have dropped in Denmark and Belgium after weeks of stagnation, and price weaknesses cannot be ruled out in the pork market, according to the VEZG.
The EU pork sector is at risk, with potential indirect effects on Germany. The Chinese authority has imposed anti-dumping duties on around 100 European companies, with rates varying between 15.6% and 32.7% of the product value. The EU countries most affected by these tariffs on pork imports are primarily Spain, the Netherlands, and Denmark, which are the main exporters of pork to China.
Market observers also report a slightly increased supply of live animals selling well. However, larger slaughterhouses are demanding a significant reduction in the pork price. Despite the end of the summer holidays, demand remains subdued, according to Dr. Robert Elmerhaus, head of live animal purchasing at Tönnies.
In contrast, only in Italy can producers currently rejoice in significantly increased slaughter pig prices. Meanwhile, the Belgian Danis Group is currently paying €1.300/kg live weight (LW), 4 cents less than the previous week. European pork prices have already fallen since the duties came into effect on September 10. Companies not explicitly listed must provide a security deposit of 62.4%.
Dr. Elmerhaus reported a lack of momentum in meat sales on September 12. The number of pigs slaughtered in the 36th calendar week was higher than in the same week in 2024 and 2023. Vion must pay 32.7% of the value, and Danish Crown must pay 31.3% of the value.
The pork price has been stagnant at 1.95 euros/kg SG since early July, and price fluctuations are likely to continue as the market adjusts to these challenging conditions. The EU and its member states will need to navigate these difficulties carefully to maintain a stable and sustainable pork industry.
