Spain is increasing its pork production
Spain has managed to increase its pig production even if the producers have been losing money during the last two months of 2018. "We finished the year with a price of Mercolleida´s hog market, higher than what was expected, of € 1,038 / kg alive with an average weight of 113 kg of live weight. This price is below 1 - 2 cents of € of European competitors; but this difference is less than a year ago. Spain has had a higher price almost all year, only during the winter its price has been lower. Average prices in € / kg alive weight have been 1.13 in Spain; 1.10 in Germany, 1.08 in France and Holland.
We also finished and / or started the year with a value higher than a year ago of 0.023 €. As regards the slaughter weight, it is increasing year by year, in 2015 the average was 107.6 kg of live weight and 83.71 kg of carcass weight, while in 2018 it was 111.3 kg of live weight and 85.34 kg of carcass weight. With these sales price data and with the production cost forecasts of around 1.05 € kilo (according to SIP Consultores estimates), the producers have been losing for the last two months, but less than what had been thought to be. The production has increased and the sacrifices are going to be between 6 and 8% higher than those of the previous year. The meat industry has not been able to revalue meat in recent months but has increased the volume to compensate for this lack of price", explains Mercedes Vega, Genesus General Director for Spain, Italy & Portugal.
One major difference between Spain and the rest of Europe is that the Iberic country has not reported any increase of frozen meat stocks. "The Spanish meat industry continues to do a good job, being able to export all this production at competitive prices.
But despite the fact that the year 2018 has closed better than expected, the year 2019 begins with much uncertainty, on the one hand production has been increased but not enough to be able to supply the all new projects (for spring it is expected that new slaughterhouse of Binefar of the Pini Group will begin to operate). On the other the price of Mercolleida starts € 1,038 against € 1,015 over last year and the average weight of slaughtering is increasing", added Ms Vega.
Regarding exports, Spain is counting on the Chinese market to absorb some of its fresh meat and sausages derived from Spanish pork, including cured ham. Until now, only frozen or boneless meat could be exported and cured products with a minimum of 313 days of cure. This new agreement will open new opportunities for the Spanish pig sector and can give greater added value, allowing for higher quality products. "Spain in recent years has gradually been changing to make a finished pig with Duroc and producing meats with more quality in order to supply specific market niches. This opening of China is an opportunity for this type of Spanish products", declared Mercedes Vega.
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