German pork trade remains relatively stable despite ongoing ASF outbreak

By Bethan Wilkins

The German VEZG pig price has remained unchanged for a third week, at €1.27/kg for the week ended 23 September.

There are undoubtedly challenges in the supply chain with marketing products that are less desirable in the EU and are traditionally exported to Asia. Reports indicate some products are going into storage because of this. There is perhaps some optimism in Germany that the international market may eventually begin to accept a regional approach to ASF-related trade restrictions.

The farmgate price does not seem to be experiencing further downward pressure at this time, suggesting supply and demand are reasonably balanced overall for now. Slaughter is still limited by slaughterhouse operations, although (looking at reports from AMI) it now seems there is also an intentional effort to slaughter fewer animals due to the slump in demand. Of course, this will ultimately add to a backlog of pigs that will need to be slaughtered eventually.

Elsewhere in Europe, the effect on markets has been somewhat mixed. Other EU exporters are still able to benefit from strong demand for pork in China. Reports indicate that there is particular demand in Spain from slaughterhouses with China approval. Also, in the Netherlands, the Vion 54% price actually increased by 3 eurocents to €1.47/kg for the week ended 27 September. Nonetheless, most prices seem to be broadly stable overall. It remains to be seen how attractive low-priced German pork will be to other European importers.

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