Philippe Mallétroit, Director for France, Genesus Inc.
Pork market: 2019 summary
Due to the very high Chinese demand for pig meat, 2019 has been a very profitable year for french pig producers. The market price average was 1.496 € per kg carcass (1.669 US $) in 2019, which is the highest level reached since 1992 in France!
Compared with 2018, the annual market price average increased by 30 cents per kg, which means a 25% increase or a difference of around 28 € (31 US $) per market hog.
Clearly, the price increase began in mid-March and reached its highest level at 1.702 € per kg (1.899 US $) in December.
Since mid-December hog price lost 6.9 euro cents per kg and got to 1.633 € per kg carcass by the end of the year (market of December 30th). Slaughtering activity in Europe declined during this period due to lower demand on domestic and export markets, but also due to end-of-year holidays
December 27th, the price for the 8kg weaned piglet was 35.47 € (39.58 US $) per head in Brittany (main pig producing area in France), whereas one year earlier (December 21st, 2018), the price was 19.23 € (21.46 US $) – an increase of more than 84% in one year.
We observe the same pattern for the 25 kg piglet, priced at 2.20 € per kg live weight (2.45 US $) this year on December 27th, compared with 1.15 € per kg live weight in the same period of 2018 – a 26€ increase for the 25 kg piglet
What’s next for 2020?
We expect hog prices to retain record levels due to the strong demand caused by African Swine Fever (ASF) in China. ASF severely affects Chinese domestic production which leaves a huge demand for pork meat and meat protein in general.
We need to pay special attention to ASF development in Europe, especially in Germany. If Germany would to get ASF disease, China will probably continue to buy pork from Germany but at a considerably lower price. This event would produce a ripple effect on Europe’s pig market as a whole.
Source : MPB, Uniporc-Ouest, RNM-FranceAgriMer
Categorised in: Featured News, Global Markets
This post was written by Genesus