As has been the case many times in the past, Germany has again laid down the new line of approach with an 8 cents’ price decrease. The prices were also corrected downwards considerably in the Netherlands and in Belgium. The price decreases were far less in Austria, Denmark and Great Britain.
The ball was set rolling by German slaughter companies last week by reduced quantities, thus contributing to depressing the prices which then went down considerably, to the surprise of many market participants.
This was repeatedly attributed to the meat businesses who have been facing slow demand and bad margin. Majority of the German states have started their holidays, the slaughter belts no longer running at full capacity. In Austria, the overall market situation was less dramatic. The Austrian VLV predicts that the price decrease is caused by pressure from Germany alone.
The French and Spanish markets are not as much affected by the pressure because the holiday season has started and the holiday-makers have helped raise pork consumption. Of particular note is the price gap between Spain and Germany after Germany's 32 cents’ price decrease. Thus, France is now back to ranking second, now ahead of Germany within the European price structure of the five major pig-keeping EU member countries.
Trend for the German market: The situation on the European slaughter pig market is most likely to remain tense over the next few days. With the quantities on offer being reduced in number, supply still outweighs daily businesses. Therefore, a further price decline seems unavoidable. This week's Internet Pig Auction results have also moved in this direction.
