Sow herd liquidation to start in the EU
A sow herd liquidation is about to start in several EU member states as prices are dropping fast due to Coronavirus and German-Asia export market closure. ASF in Germany has created a downward spiral that is impacting Germany, the Netherlands and Denmark. German pork is now shipped mostly in the EU single market after access to major Asian markets such as China, Japan, South Korea, the Philippines was lost.
"On September 2, prior to ASF the Germany Slaughter Price was €1.47/kg carcass, last week German slaughter price was €1.19/kg. The difficulties of the Euro slaughter market can be seen in Danish feeder pig prices. PRRS Positive 60 lb. feeder pigs averaged 436 Dkk the last 52 weeks (€58.5), last week they were 144 Dkk (€19.35). We expect liquidation in the European sow herd over coming months, as Coronavirus, German-Asia export market closure and higher feed prices lead producers to quit as the pig price goes below the cost of production," commented Jim Long, President-CEO, Genesus Inc. So far, Spain and France have maintained pig prices to levels reported before the German ASF outbreak.
(Photo source: Cargill)
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