- Pigs get to feel the grill season
Pork producers are feeling the current subdued demand for meat in their pockets: Slaughterhouses have reduced producer prices over the past two weeks. Disappointing business on the meat market was cited as the reason, said Klaus Kessing, market expert of the German Pig Producers' Association (ISN) based in Lower Saxony, Damme.
The price cut averaged around two euros per pig or two cents per kilogram, Kessing explained. Especially the grill business had fallen short of expectations. "We had hoped for more, especially at the beginning of summer," he said. Although demand has since picked up, the season has not been particularly good: "That's due to the rainy summer."
Reduced demand during the travel season
The decrease in demand during the summer months is essentially an expected seasonal effect, Kessing explained. The summer vacation period is generally a time when relatively little meat is sold, due to many customers being out of the country. However, the dip in producer prices usually comes later, in late summer or autumn.
Pig producers are relatively well-positioned this year, said Kessing. "Prices were well above two euros per kilogram of slaughter weight until recently, and feed costs have also decreased significantly." While the situation has since deteriorated somewhat, it is much better compared to 2021 and 2022, when there was not only the COVID-19 pandemic but also outbreaks of African Swine Fever.
Stable animal numbers, fewer operations
This is reflected in the fact that the number of pigs has stabilized: The latest livestock census showed the same number of pigs as the previous year. "That's a good sign that things are improving a bit," said Kessing.
As of May 3, the Federal Statistical Office reported that the number of pigs held was 20.9 million, virtually unchanged from the same day last year (-1,200 animals). However, the number of operations decreased significantly in the same period: With 15,700 pig-holding operations, there were 3.4 percent fewer than the previous year.
Concerns about African Swine Fever
There has been a slight increase in slaughter numbers for pigs - 21.9 million animals in the first half of the year represents a 0.4 percent increase, the first since eight years. However, Kessing does not believe there will be a significant increase in stocks and slaughterings again.
A major concern is African Swine Fever (ASF). In Hesse, this is an important issue, as there have been several cases not only in wild boars but also in farmers with smaller herds. The situation is very stressful for the operations in the affected regions. Other federal states are also watching closely, fearing that the animal disease could spread further. "The concern is always there that ASF will spread further," said Kessing.
Despite the seasonal decrease in demand during the summer vacation period, agriculture, particularly pig farming, has stabilized this year. Pig producers have benefited from higher prices and lower feed costs until recently, despite the current subdued demand for meat affecting their profit margins.
