German pig farmers slam ‘unacceptable’ pig price slump
The German pig farmers’ union ISN, as well as the agricultural interest group WLV in western Germany, have expressed grave concerns about the recent drop in pig prices at German slaughterhouses.
Under pressure from meatpackers Tönnies and Westfleisch, Germany’s best-known pig price benchmark (Vereinigungspreis) was recently reduced by €0.10. As a result, the German pig price ended up being €1.60/kg. WLV, short for Westfälisch-Lippischer Landwirtschaftsverband, speaks of a “dramatic collapse of the pig price”. The interest group labels the price drop as ‘unacceptable’ and ‘unjust’.
Very unfortunate timing
WLV said that the timing of the price drop is also extremely unfortunate. At the start of the barbecue season in the northern hemisphere, the chain should actually be relying on increasing demand and rising prices. Hubertus Beringmeier, WLV, said in a press release: “This is an extremely bitter start to the summer and barbecue season for the pig farming industry.” He is critical of the negative signal that German slaughterhouses are sending with the price drop.
Market experts at ISN are also surprised by the timing of the significant price correction, just as the grilling season has started. According to ISN, the supply of pigs is no larger than a year ago, meaning there can be no question of a structural oversupply.
Cancellation of slaughter days
The cancellation of slaughter days due to the holidays was cited by German slaughterhouses as an argument to exert pressure on pig prices, ISN noted. According to the pig farmers’ union, pig producers cannot solve the margin problems of the entire value chain alone. “Anyone who constantly puts producers under such pressure is cutting into the branch on which the entire value chain sits,” ISN stated.
WLV added that the persistent price pressure from slaughterhouses is having negative consequences for the German pig sector. The organisation said slaughterhouses should immediately reverse the downward price trend to avoid further jeopardising the sector’s survival.
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