Published in Market Analysis
Market Pulse: Up down and sideways
European slaughter pig quotations have moved both up down and sideways over the past six months. What's going on?
Bo Pedersen
Chief Revenue Officer
The following is based on analysis by Meatborsa of European Slaughter Pig quotations. Meatborsa tracks European Pork and Beef quotations weekly, check it out here: https://prices.meatborsa.com/
Spanish Recovery
The Spanish Mercolleida quotation has increased over 50% from its January lows incurred as a result of the African Swine Flu (ASF) outbreak among wild boar populations. ASF is now under control, and Spanish pigs are once again available for export, and the country has been more successful than other EU members in avoiding the worst of the Chinese tariffs.
Danish Export Woes
Danish pork production is heavily biased towards exports and the combination of structural oversupply within Europe, Chinese tariffs and increased competition from South American producers have combined to hit Danish Crown where it hurts, and its quotation has remained stubbornly depressed, down almost 30% year on year.
Fluctuation or recovery
German and Dutch quotations have recently recovered from the lows of the quiet summer period. However it is premature to pronounce a recovery, as both quotations have fluctuated significantly over the past 12 months. Reduced herd sizes and increased demand going into the autumn and winter season points to further upward movement in the short to medium term, balanced by ongoing supply gluts from neighbouring producers.
