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.
"Up until 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 Lauritsen.
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)
To comment, register here
Or register to be able to comment.