Philippe Mallétroit – Director for France
At the last market of January 31st, the price was 1.170 €/kg carcass (1.339 $). This price correspond to the average price of beginning of 2019.
Last year in 2018, the average price was 1.196 € (1.369 $) and 1.372 € (1.571 $) in 2017.
Due to continued expansion of African Swine Fever in China, China lost over 5 million sows on the last 12 months. This massive production decline, which is still continuing, should be favorable in 2019 for exporting countries like North America, Brazil, Europe and especially France. The question that we can ask ourselves today is : how soon will we see this impact on the price of French pork?
The market of the 8 kg weaned piglet is fluid and the price is rising.
Due to a lack of outlook on the finisher hog price,
the price of the 25kg piglet is suffering with a moderate price increase
Market segmentation ?
The pork represents 40% of total French meat consumption, but as it is the case with other meat products, french people consume less and less. Today it is about 33.1 kg of pork per capita, lower than in 2010 with 34.3 kg and lower than in 2008 with 36.5 kg.
That’s a drop of 3.4 kg of pork per capita in 10 years !
Quick calculation : 3.4 kg x 67 Millions of inhabitants = 227 800 Tons
Even if it is not very accurate, we can have an idea of the big drop pork consumption in France.
How to stop this trend, if not by offering more “quality” and choice to consumers and thus segment the market. This is what the recent news suggest.
On January 16th, E.Leclerc store
and its packing subsidiary Kermene launched a new sector named “collective
level 2” which will offer consumers a pork based on animal welfare
criteria more advanced (welfare farrowing pens, natural light in buildings or
outside access …), but also a better price paid to the producer (price
disconnected from the market and indexed on feeding cost). We heard about 1.60
€ paid to the producer in February.
Also in January, Cooperl cooperative, the biggest pork producer in France and a big promoter of Piétrain for many years, launched a “high premium” Duroc pork raised on straw! The goal is to “make good food for our customers” says its President.
We are totally agree that Duroc is a better pork regarding flavor, marbling and tenderness than Pietrain, and it is why 20 years ago Genesus made the unique choice to develop Duroc as sire line, to reach taste expectations of consumers.
In summary, these recent news show us that it is possible to offer different pork to consumers (market segmentation) with a better price paid to producers, and disconnected from the market price.
This post was written by Genesus