VEZG pork price falls to €1.50 as Spanish exports rise

The German pork industry is currently facing significant challenges as the VEZG pork price has dropped by 10 cents, reaching a low of EUR 1.50 per kilogram carcass weight. This decline comes at a time when prices would typically rise due to seasonal demand.

Market Context

The European Union's pork market is experiencing an oversupply, primarily driven by the impact of African swine fever (ASF) in Spain. Spain, which has surpassed Germany as the largest pork producer in the EU, has seen its exports to key Asian markets restricted due to ASF. Consequently, Spanish pork exports within the EU have surged, leading to increased competition and pressure on German producers.

Impact on Prices and Production

The oversupply in the EU market has resulted in significant financial losses for German pig farmers, with combined losses from piglet production and fattening reaching approximately EUR 50 per animal. This situation is reminiscent of the financial difficulties faced during the COVID-19 pandemic. The domestic market is further strained by a downturn in the restaurant sector, which has reduced out-of-home pork consumption.

Retailers and Responsibility

In response to these challenges, many German food retailers are emphasising the importance of supporting domestic agriculture. They are promoting products with clear labeling of German origin, such as the "Gutes aus Deutscher Landwirtschaft" seal. However, wholesalers and the food service industry have been criticised for not adequately highlighting the origin of their meat products, often opting for vague or misleading labeling.

Call to Action

Despite the difficult circumstances, there is a call for greater responsibility from wholesalers and the catering industry to support domestic pork production. With the reduction in VAT aimed at bolstering the domestic economy, these sectors are urged to align with the retail industry's efforts to promote German-origin products.

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