German pig farmers face difficult conditions amid low purchase prices

Pig purchase prices in Germany remain extremely low. According to ISN, the VEZG price stayed at €1.45/kg carcass weight last week after falling by €0.15/kg two weeks earlier. Current production costs require more than €2.00/kg to cover piglet raising and fattening expenses.

At these price levels, losses for German producers are estimated at around €55 per pig. With about 900 thsd pigs slaughtered each week, total losses for the sector could approach €50 mln per week.

Market pressure is being intensified by the seasonal increase in pig supply during autumn and limited sales opportunities. Consumers are increasingly cutting spending, focusing on promotions and cheaper products, while demand from the restaurant and hotel sectors remains weak.

Additional pressure comes from oversupply in the EU pork market. Spain, facing restrictions on exports to third countries, is selling more pork within the EU, increasing competition for German producers. At the same time, European pork faces competition from cheaper supplies from the US and Brazil on export markets, while demand from China remains weak.

The situation is further complicated by rising costs across almost all categories, including energy, fuel, feed, veterinary services, logistics and farm maintenance. Industry representatives note that the scale of current losses resembles the COVID-19 crisis, but producers now have fewer options for financial support to cover liquidity gaps.

Tags: pork, prices, Germany