EU pig market - fears and hopes unveiled
The overproduction of pigs has brought the whole of
Europe into a survival threatening situation, according to German market
analysis association ZMP.
The European Commission has ruled out pig price
increases in the first quarter of 2008. Restrictions in pig production will only
set in during the course of 2008, returning profit slowly.
In the main pig
producing countries - Germany, France, the Netherlands, Denmark and Spain - the
pig prices will clearly be lower in the last quarter of 2007 in comparison to
the same period a year ago.
For producers in Finland, Sweden, Greece and
Poland, somewhat higher prices have been forecasted.
In total, pigmeat
prices for 2007 in the EU are around 10% lower than last year.
Why the lower prices?
simple - supply has outstripped demand. ZMP estimates that pig production within
the 25 EU countries is around 22 million tonnes this year - nearly 3% more than
in 2006. In addition, 365,000 tonnes of pigmeat from the EU accession countries
Romania and Bulgaria must be considered.
In Eastern Europe, the reaction
towards the high feed prices is strong. Pig production in Poland, for example,
is expected to decline by 6% in the first half of 2008.
Hungary and the
Czech Republic are counting on at least a 5% decline in production.
production, however, combined in Denmark, the Netherlands, France, Germany and
Italy, in the first half of 2008 is unlikely to be significantly less than in
â€¢ European Commission
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