WEEKLY PIG INDUSTRY REVIEW BY DR. ABRAHAM W09

Dear readers,

                   The prices are on an upward trend almost everywhere in Europe, besides this we have other good news also:

  • The European Commission proposed to support 390 dismissed workers in the meat processing industry in Denmark with €1.9 million from the European Globalization Adjustment Fund for Displaced Workers. In December 2023, Denmark applied for EGF funding after the Danish Crown meat company closed its slaughterhouse in Sæby. As 41% of the dismissed workers are not fluent in Danish, focus will be on language skills also. Workers will receive an allowance while engaged in training or job search. The total estimated cost of these measures is €3.1 million, with  40% (€1.2 million) financed by The Danish Business Authority, the municipalities of Frederikshavn, Aalborg, Hjørring and Brønderslev, which were affected by the dismissals, and by Danish Crown.
  • The ambassador of China in Argentinawent in a visit to the model plant of the Gorina Refrigerator. The establishment is the largest meat exporter in the country, allocates more than 70% of its production to this Asian market and seeks to continue expanding.
  • The number of ASF cases in wild boars has decreased significantly in Brandenburg, the Ministry of Consumer Protection requested the EU Commission to lift further parts of the exclusion zones at the beginning of January. The EU Commission has now approved the application. This means that the total area of exclusion zone II in Brandenburg is reduced from 4,499 to 2,545 square kilometers.

Events calendar:

  • Foodex Japan is a showcase for the latest products and services in the food and beverage industry; it is a central meeting point for professionals from around the world. The venue takes place at Tokyo Big Sight on 4 days from Tuesday, 05. March to Friday, 08. March 2024 .
  • The Food, Hotel & Tourism Bali fair, by combining an exhibition and a conference, it enables participants to stay informed about the latest developments, establish valuable contacts, and forge strategic partnerships. The thirteenth FHTB takes place on 3 days from Wednesday, 06.03.2024 to Friday, 08.03.2024 in Nusa Dua.
  • Food Expo Greece 2024 will present from March 9 to 11 all the trends and innovations shaping the future of the Food & Beverage industry. For 10 years, Food Expo has represented the dynamic Greek food and beverage sector, attracting over 2,000 international food traders every year and 1.300 leaders of the Greek and global F&B industry will present their products, at the fair ground near the airport of Athens.
  • From 08 to 12 March 2024, Hamburg will once again become a vibrant metropolis and the place-to-be for the entire catering market. INTERNORGA is the leading European trade fair for the entire out-of-home market. Under the motto “Leading the Way”, at the Congress Center Hamburg, it will present the latest trends in the industry.
  • SIRHA Budapest, the most significant international HoReCa and Retail Show of the CEE region awaits the professionals on 5-7 March 2024 for the sixth time at HUNGEXPO Budapest Congress and Exhibition Center.

Forgotten Years

           The above presented fairs are only some of the many organized in this period all over the world. The preparations for the tourist and grilling season are starting, Easter in the catholic and protestant countries is in less than one month.

           We have been also writing about the 1 billion € aid for the German pig industry. Details have emerged about the way it would work: 

  • Funding for animal-friendly new buildings and conversions: anyone who invests up to 500,000 euros will receive funding of 60 percent of the total construction cost. Investments beyond this amount of up to 2 million euros are funded at 50 percent of the costs, further investments up to 5 million euros at 30 percent. 
  • Supporting the ongoing additional costs of keeping animals in a more animal and environmentally friendly manner, according to the number of animals kept: 80 percent of the ongoing additional costs can be funded for up to 50 sows, 1,500 rearing piglets and 1,500 fattening pigs. For animal numbers exceeding this, up to 200 sows, 6,000 rearing piglets and 6,000 fattening pigs, 70 percent of the additional costs can be funded.

 

Funding for ongoing additional costs is available to all businesses, including those that already operate in a particularly animal-friendly manner. However, the money can be accessed only if the ratio of livestock to area corresponds to a maximum of 2.0 livestock units/hectare, therefore only includes companies with appropriate space resources or companies that have appropriate cooperation agreements to secure the space.

The German Tönnies Fleisch had announced a few years ago its interest in building a pig slaughterhouse in the Spanish town of Calamocha. However, the administrative and judicial obstacles imposed for more than a year have led Tönnies Fleisch to abandon its interest in undertaking this investment, which at the time amounted to more than 75 million euro. One reason is the contentious administrative appeal filed by Quality Pharma World against the integrated environmental authorization requested by Aragón Matadero, the company with which the investment to be made in Calamocha by Tönnies was being orchestrated.
       Tönnies was for many years the leader of the European pig industry. Now the availability of the German pigs is strongly reduced, compared to the slaughtering capacity. The livestock aid program, while has an apparently large funding, will address mainly small farms, it will not solve the issues of the large slaughterhouses. The investment in Spain would have been the escape route for the large German operator. With the blocking of this route, the speech of Clemens Tönnies at the ISN general meeting two weeks ago gets even more sense. He was appealing to solidarity between the players in the pig and pork market, asking for a fixed price of 2,1 €/kg for 6 months, stating that it would be better, than 2,5 €/kg for one week. Well, why should the farmers do this? With the current piglet prices, this would be a guarantee for loss. Average German quotation was 2,258 €/kg last year, if farmers accept now a deal of 2,1 €/kg for six months, this year would end at a lower value. And 2,5 €/ kg was achieved for 5 weeks in a row last year, not for one. Last, but not least: 2021 average price was 1,343 €/kg, 2020 was at 1,653 €/kg. We have seen prices ranging between 1,17-1,28 €/kg for many weeks in that period. Where was the solidarity then? Are these years forgotten?

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

COUNTRYPIG(EUR)TRENDPIGLET(EUR)TRENDOBSERVATION
GERMANY2,20 C85/25 kg 
NETHERLANDS1,92-2,22 C76,5/25 kg  
BELGIUM1,58 V77/20 kg 
DANEMARK1,65 C90/30 kg 
FRANCE1,953 C   
ITALY1,71 V115kg, 2,06 V160kg, DOC135,4/30 kg   
SPAIN1,71 -1,72 V 88-97/20kg 
PORTUGAL2,4 C   
AUSTRIA2,16 C103/31 kg 
POLAND1,46 – 1,76 V85-132/20-30 kgPartner info; no quotation
CROATIA2,05 – 2,15 C104-115/ 25 kgPartner info; no quotation
SERBIA2,04 V 110-117/ 25 kgPartner info; no quotation
CZECH R.2,13 – 2,17 C70-76/ 25 kgPartner info; no quotation
SLOVAKIA1,65 -1,73 V105-110/25 kgPartner info; no quotation
HUNGARY1,74 – 1,84 V105-110/25 kgPartner info; no quotation
ROMANIA1,65 – 1,74 V105-115/25 kgPartner info; no quotation

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