Germany: towards a rebound in pork prices in spring 2022?
With a depressed market, the German pork industry has sharply reduced its production in 2021. This drop could well contribute to a rise in prices next year.
Published on December 15, 2021- ByV.C.© pixabay julien tromeurSince the covid19 pandemic and the appearance of African swine fever across the Rhine, the German pork market has been slipping. With limited exports to third countries and declining national demand, the sale of pork meat is difficult. Competition in the European market is intensifying. In addition, the rebound of the pandemic limits the felling of tools and marketing. The average price of pork received by fatteners should be around 1.37 euros/kg in 2021.
Follow the evolution of pork prices in Germany on Commoprices.
The fall in prices is even more marked among sow farmers. At 38 euros/head, the average piglet price is 17% below its level of last year. All this, even as food prices remain at exorbitant levels. Many farms are struggling to cover their production costs and are close to bankruptcy.
More and more farms are going out of business
With such a depressed economy, more farms are closing their doors. In May, the German pig herd fell by 3.1% over one year to 24.7 million head. The number of sows shows the greatest decrease. This structural change should accelerate next year. According to Ami, pork production is expected to drop by 7% in 2022 to 4.37 million tons. "While at the beginning of the year, meat surpluses should still weigh on the German market, from spring onwards, the decline in numbers will be felt, which could contribute to easing the pressure on the prices of pork butchers in the country," said Ami.
Structural decline in pork consumption
Pork consumption in Germany has been in decline for several years. In 2022, it should fall below 30 kg / year, forecasts Ami. A situation that is part of a basic trend towards the consumption of meat. In addition, the number of vegetarians, vegans and especially flexitarians continues to grow in the country. Beef and poultry are also more attractive to Germans to the detriment of pork. The covid pandemic has also highlighted the slaughter and working conditions in certain pig slaughterhouses, which has sparked public protests. Despite all this, pork remains by far the favorite meat of the Germans.
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