EU pork exports are 10% lower than a year before
Europe's exports have dropped 10% compared to a year before and the regional market is trying to accommodate to the situation. China is buying 10% less in the first two months of the year to the EU, than in the same period of 2017.
However, the prices are balanced at around 1.10 -1.20 € / kg live weight, a little bit lower than a year ago when the average on the EU market was at €1.24. Confronted with this situation Spanish producers are increasing the weight of the pigs in order to cover the marginal losses.
"The weight is well above the weights of the last 4 years - 1.78 kg higher than a year ago, but more than 3.5 kg compared with 2015. The slaughter weight is increasing little by little. On the one hand because of market change - consumers looking for meat quality. On the other hand, this helps to dilute the fixed costs of production.
There are fewer animals to sacrifice, less supply, but demand is accommodating to it. The price of meat prevents the industry from sacrificing more and maintaining its rate of slaughter so as not to worsen its exploitation account", mentions Mercedes Vega, Genesus General Director for Spain, Italy and Portugal.
Meantime, the packing plant throughout the EU, in general, does not want to freeze more meat than necessary. They do not see a very clear situation, which can cover the costs that this entails as the future of prices is not very clear.
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