Dear readers,

We start with some good news:

• In an experiment done at the New York University Langone Health transplant department a kidney from a genetically modified pig remained clinically healthy for more than one month after being transplanted into a 52-year-old brain-dead patient.
• In the province of Ontario the University og Guelph will manage a newly opened Swine Research Center, resulted from a 20 million CAD investment of the Government, the Agricultural Research Center and the local pork producers
• USDA in partnership with New Hampshire Community Loan Fund makes 123 million USD available in grants for independent businesses through the Meat and Poultry Expansion Program. The value of the eligible projects is between 250.000 and 10 million USD, applicants have to cover 70% of the total cost.

Events calendar:

• USDA is organizing the third edition of North American Forum on African Swine Fever between 29-31 of August, in Raleigh, North-Carolina. Mexican and Canadian authorities are also participating, while Commissioners from the Caribbean, the central and southern regions of the continent, as well as European entities and international organizations will also be involved in the event

The Model

New data show the evolution of the pig industry in the first six months of the year. The European Union exported 2.02 million tons of pork. This is the smallest volume for the period since 2015, when volumes shipped totaled less than 2 million tons. Total pork exports have fallen by 17%. The decline is matching  the reduction in supply, since the lower production of pork in the continent limits the availability of exports. In the first 5 months of 2023, the EU produced 8.68 million tons of pork, 9% less than during the same period in 2022, the lowest value since 2014. All Member States have registered falls, with the largest volume changes being observed in the main producing countries of Germany, Denmark and Spain. As destination, China is still leading, with 31%.

The main Danish meat group is expecting only 11 million pigs to be delivered to the Danish Crown slaughterhouses next year in the home country and less than 3 million in the German operation. This would be 4 million less, than in the 2018/19 financial year. This is quite different from the “stable numbers” assumed by the group CEO 2 years ago, so now Jais Valeur announces „tighter production management and the simplification and realignment of our business model”.

                   The German neighbors continue the downfall. Lower Saxony would like to give preference in financial support to pig-keeping companies that permanently reduce their stocks or give them up entirely.

The Borchert Commission was dissolved on Tuesday afternoon. The reason for the withdrawal of the committee are the negotiations on the federal budget for 2024, in which no further movement to finance animal welfare premiums for the restructuring of animal husbandry is to be expected. 

The leading German meat processor Family Butchers is reacting to the shrinking sales of meat and sausage products with another location closure. The company has decided to discontinue the operations of Schinken-Einhaus GmbH & Co. KG in Lörrach with effect from November 12^th 2023. About 40 jobs will be affected by the closure.

The meat company, emerged three years ago from the merger of the family companies Reinert and Kemper, announced in the spring that the plant in Vörden with around 300 employees will be closed by 2025. The group currently employs around 2,600 people at six locations. Only the Tönnies subsidiary Zur Mühlen produces more sausages in Germany than The Family Butchers.

We were debating several times this different approaches. In my opinion, for reduced supply the right way is to adapt the production capacity. Than why is it, that the German slaughterhouses, with reduced availability of pigs, instead of adapting capacity, are pushing the pig prices down, determining even more farmers to go out of the business? And why do we continue to follow the model?!

European pig and piglet prices: HW= Hot weight; L= live weight;

COUNTRY	PIG(EUR)	TREND	PIGLET(EUR)	TREND	OBSERVATION
GERMANY	2,30 HW		80/25 kg
NETHERLANDS	2,07-2,32 HW		65/25 kg
BELGIUM	1,66 L		60/20 kg
DANEMARK	1,79 HW		76,5/25 kg
FRANCE	2,11 HW
ITALY	1,96 L 115kg, 2,28 L 160kg, DOC		132,30 kg
SPAIN	1,93 -1,95 L		76-85/20kg
PORTUGAL	2,68 HW
AUSTRIA	2,27 HW		95/25 kg
POLAND	1,57-1,95 L		78-123/20-30 kg		Partner info; no quotation
CROATIA	2,05-2,25 HW		110 / 25 kg		Partner info; no quotation
SERBIA	2,30 L		110-131/ 25 kg		Partner info; no quotation
CZECH R.	2,29 – 2,37 HW		75,5-83/ 25 kg		Partner info; no quotation
SLOVAKIA	1,92 -1,97 L		100-105/25 kg		Partner info; no quotation
HUNGARY	1,95 – 2,06 L		100-105/ 25 kg		Partner info; no quotation
ROMANIA	1,97 – 2,10 L		100-105/25kg		Partner info; no quotation