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EU Pig Prices Seen Lower by ISN as France Leads Decline

European Union pig prices fell this week on pressure from slaughterhouses, led by a decline in France, German industry group Interessengemeinschaft der Schweinehalter Deutschlands e.V. reported.

French pig prices fell for a second week to 1.834 euros ($2.38) a kilogram (2.2 pounds) from 1.889 euros last week, Damme, Germany-based ISN wrote in a report on its website today. Pig prices in Germany declined to 1.846 euros a kilogram from 1.876 euros last week.

Germany is the EU’s biggest pork producer, followed by Spain and France, Eurostat data show. The EU has forecast pig-meat production in the 27-nation bloc will fall 3.2 percent next year on higher feed costs and new animal welfare rules.

“The timing for a declining market in France is very unfavorable, because price negotiations are now taking place in the meat trade,” ISN wrote. “At the same time the French see the situation as transitory, because the cold stores are empty and a production drop in pig breeding is to be expected.”

Pig-meat prices in the Netherlands, Belgium and Austria followed German prices lower, according to ISN. Dutch prices fell to 1.781 euros a kilogram from 1.81 euros, in Belgium the price fell to 1.84 euros from 1.865 euros and Danish pork prices slipped to 1.825 from 1.826 euros, ISN said.

The drop in German prices was “completely unexpected and, with a view on the live market, completely unjustified,” the industry group wrote.

Prices in Spain fell to 1.949 euros a kilogram from 1.961 euros last week, as the end of the main summer holiday period means less demand from tourists, ISN said.

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