German pig farmers squeezed by low prices and high costs

Pig prices in Germany remain well below production costs. According to ISN, the VEZG price for slaughter pigs is holding at €1.45/kg carcass weight, while producers need more than €2.00/kg to cover all costs.

At current prices, losses are estimated at around €55 per pig. With roughly 900 thsd pigs slaughtered each week, total losses for German pig farmers could reach nearly €50 mln per week.

Weak demand is adding further pressure. Consumers are increasingly opting for cheaper products and promotional offers, while demand from restaurants and hotels also remains subdued due to high costs and limited purchasing activity.

The situation is further complicated by oversupply in the EU pork market. Spain, facing limited export opportunities to third countries, is selling more pork within Europe, intensifying competition. At the same time, European suppliers face cheaper pork from the US and Brazil in export markets, while demand from China remains weak.

At the same time, costs for feed, energy, fuel, veterinary services, labour and logistics have increased. Industry participants say the scale of current losses resembles the COVID-19 crisis, but producers are now operating with significantly higher production costs.

Tags: pig, prices, Germany