Danish organic pig sector facing downturn
Organic pig producers in Denmark are under increasing
pressure due to high future-contract feed prices and falling pig prices on the
export market, as a result of increased domestic production.
A recent press release from the Danish Meat Association
reports that sales on the Danish domestic market have increased in 2008, the
situation on export markets has changed dramatically.
The UK, a primary importer of Danish organic pigmeat has
radically reduced the amount of pigmeat it imports. "We lost a relatively large
proportion of exports on the British market in a period when Danish pig
production has been increased to fulfil expected demands on the British and
other European export markets," said Henrik Lauritsen, international
departmental chief of Danish organic meat company, Friland.
last year, when we secured new contracts with newly-converting organic farmers,
European markets were undersupplied with organic pigmeat. Unfortunately, many
other countries have also expanded their organic pig production, and this has
detrimentally changed the market-supply situation in Europe" continued
However, whilst sales to the UK have fallen, the company is
reporting slightly increased exports to Germany and France in 2008. "From the
coming New Year, the French organic approval system will be fully EU-harmonised,
which will give us increased marketing possibilities.
“This year we have also established marketing
possibilities in Italy, Ireland, Belgium and Sweden. I am convinced that the
present economic prospects for Danish organic pigmeat production will improve,
and we will inevitably see stabilised and realistic feed prices. It will take
some time, but we are in no doubt that organic pigmeat production will again be
profitable," he concluded.
• Danish Meat
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