French pig producers are affected by low prices and a sectorial labour shortage
The French market for pork is confronted with a decrease of prices by almost 30%, as reported by Philippe Malletroit, Director France, Genesus Inc.
"Beginning of April 2018 price for a piglet was €25.44 compared to €36.91 same period last year. The average price for a 25 kg feeder pig was €1.64 per kg compared to €2.32 same period last year (that is €17 cheaper than 1 year ago). We also find these low prices for finisher pigs, where the average for the month of April 2018 is €1.190 per kg. When we compare the average price for April over the last 10 years, we can see that it is positioned around €1.306", he wrote in his report.
From that perspective, it seems that there are no sunny days for the pig producers in France even as the barbecue season could increase the demand in the domestic market.
Still, there are other problems that this sector must respond in the future and one of those is the labour shortage in this field.
As Mr Malletroit observed pig producers in France are running their farms on the same old "family enterprise" model which is not responding to the expectations of the younger generation.
"For many years, typical pig farming (like many other productions) was based on a family model, where husband, wife and (or) parents were involved in the business, and nobody counted their hours of work. Today, even though this model still continues, the size of livestock herds have increased in recent years in France, from an average size of farrow-to-finish of 107 sows in 1995 to approximately 200 sows in 2018.
What’s more, life expectations are different today especially among the younger generation, and no one is ready to become a slave to his livestock by working 7 days a week without ever taking a rest. In a recent study by the producer’s organization, one of the main motivations for the farmers was to hire employees. Employees are inevitable but hard to find", mentioned Philippe Malletroit in his report.
Nevertheless, the workforce could push up the prices of pigmeat by 12%, resulting in a difference of €0.085/kg carcass between the 1/3 superior and 1/3 inferior, which means a difference of €8 per pig, based on carcass weight of 95 kg.
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