EU pig production grew by 2% last year
Pig producers in the EU ended 2021 with an increase of 2% in production, reaching a total of 23.4 million tonnes of pork from 250 million pigs slaughtered. Trade has slowed down in the second half of the year mainly to China. Production fell in Germany (-3%) year-on year, remained stable in Poland and France, but grew in the Netherlands (+3%), Denmark (+8%) and Spain (+4%). This secured Spain’s top spot of European pig meat production at 5.2 million tonnes, much of it underpinned by exports, with China as a very important market. However, for 2022, Spain must look for other export markets around the world, as China announced that it would be self-sufficient in pig meat this year.
"We should be wary that the current spike in EU pig prices may be short-lived. While the EU pig population had declined year on year in December, the majority of the drop was in the heavier pigs, with a relatively smaller decline in the youngest piglets. It’s also thought that some pigs have been held back in anticipation of higher prices, further tightening current supplies by delaying slaughter. If it transpires that EU producers have held back only for a time, then the current shortage in slaughter pigs may ease soon. If reports of good pork supplies in the EU market are also true, together these factors would spell future weakness in EU pig prices," AHDB Lead Analyst Duncan Wyatt commented.
However, on the other side of the equation, the increase in demand in 2021 overall is probably sustainable, and could go a long way to soaking up product that until recently had been destined for China. Demand in the EU would only need to return to levels seen in early 2019 to do this. The European market has consumed this product before and it can do so again, although we should be mindful of price inflation everywhere, and consumers’ willingness to pay. For now, reports suggest that the higher farmgate prices, and other higher costs in the supply chain that are being passed on too, are not yet deterring pig meat sales, he said.
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