Grill-flaut pushes the price of pigs
Stable inventories, solid prices, and recently decreased feed costs are currently satisfying pig farmers. According to the industry association, the sector has stabilized after previously challenging years. However, a more summer-like weather would have made them even more satisfied.
Pig producers are feeling the current subdued demand for meat in their accounts: Slaughterhouses have reduced producer prices in the past two weeks. The poor performance in the meat market was cited as the reason, said Klaus Kessing, market expert of the German Pig Producers' Interest Group (ISN) based in Lower Saxony, Damme.
The price cut was around two euros per pig or two cents per kilogram, Kessing explained. Especially the grill business did not meet expectations, he said. "We had hoped for more at the beginning of summer." Although demand has since increased, the season has not been particularly good: "That's due to the rainy summer."
The decrease in demand during the summer months is basically an expected seasonal effect, Kessing explained. Less meat is sold during the holiday season as many customers are on vacation. However, the dip in producer prices usually comes later, in late summer or autumn.
Industry stabilizes - Tension due to ASP
Pig farmers are in a relatively good position this year, Kessing said. "Prices were well above two euros per kilogram of slaughter weight, and feed costs have also decreased significantly." Although the situation has since deteriorated, it is much better compared to 2021 and 2022, when there were outbreaks of African Swine Fever (ASF) in addition to the COVID-19 pandemic.
This is reflected in the fact that the number of pigs has stabilized: According to the latest livestock census, the number of pigs was almost unchanged at 20.9 million compared to the previous year. However, the number of operations decreased by 3.4 percent to 15,700.
For the first time in eight years, the number of pigs slaughtered increased in the first half of the year - a total of 21.9 million animals, slightly more than last time. However, Kessing does not expect a significant increase in inventories and slaughterings. The African Swine Fever (ASF) is a major concern. In Hesse, there have been several cases not only in wild boars but also in small-scale farmers. Other federal states are also closely monitoring the situation. "The concern is always there that ASF will spread further," said Kessing.
Despite the improvement in the pig farming sector, with stable inventories and lowered feed costs, some challenges persist. Agriculture, specifically pig farming, continues to be affected by diseases like African Swine Fever (ASF), as highlighted by the recent cases in Hesse and other regions.
The ongoing threat of ASF is a constant concern for pig farmers, affecting not only large-scale operations but also small-scale farms, underscoring the importance of rigorous disease prevention and control measures in the agriculture sector.
