Regional markets align, but high supply keeps prices steady

The European pig market is gradually stabilising, although price pressures remain significant due to high supply levels. Regional markets are beginning to align, with some areas reporting nearly balanced conditions and decreasing slaughter weights, albeit still above last year's levels.

Market Context

Across Europe, the surplus in slaughter pigs is slowly diminishing. Observers have noted that in certain regions, market conditions are approaching equilibrium, with the supply and demand for slaughter pigs nearly matching. Despite this, the pressure on meat prices remains, with prices generally moving sideways. In Denmark, for instance, prices have seen reductions for the first time in weeks.

Price Developments

In Germany, the Association of Producer Groups for Livestock and Meat (VEZG) maintained its reference price at EUR/KG 1.45 of slaughter weight. The supply has remained largely consistent with the previous week, although some surpluses are still being worked off. Similarly, in Austria, the market has cleared its surpluses, yet the price remains unchanged at EUR/KG 1.39.

Export Challenges

Exporting to third countries continues to be challenging. The Danish company Danish Crown noted a reduction in its payout price due to the high availability of fresh meat in Europe, partly due to increased supplies from Spain. Although there are signs of a potential rise in Danish exports, significant stock levels in key markets are impeding immediate growth.

European Price Trends

On a broader scale, the average price for slaughter pigs in the EU saw a slight decline. As of early February, pigs of the E classification were traded at an average of EUR/100 KG 148.06, a 0.3% decrease from the previous week. Notably, Romania experienced the largest price drop, while Poland, Austria, and Spain saw slight increases.

Overall, while the European pig market is showing signs of stabilisation, challenges remain due to high supply levels and export difficulties.

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