German pig prices fall to €1.32/kg against production costs of €2.05/kg

Slaughter pig prices in Germany continue to decline amid oversupply and weak demand for pork. According to German agricultural market agency AMI, the recommended purchase price was reduced by €0.08/kg to €1.32/kg carcass weight on October 28, 2026. Meanwhile, average total production costs, including piglet production and pig fattening, stand at around €2.05/kg. As a result, the gap between selling prices and production costs has reached €0.73/kg, increasing financial pressure on German pig farms.

According to EuroMeatNews, the economic situation in Germany’s pig farming sector has become more challenging than during the COVID-19 crisis of 2020–2021. At that time, average pig prices stood at around €1.45/kg, while production costs were estimated at €1.70–1.80/kg. Purchase prices have now fallen below those levels, while average production costs have increased by approximately 15–20%. As a result, producers are being forced to cover substantial losses from their own financial reserves.

Rising input costs remain the main factor putting pressure on farm profitability. Compared with 2020–2021, feed costs, the largest expense in pig production, have increased by 10–15%, energy costs have risen by 25–30%, and labor expenses have grown by 20–25%. Construction and infrastructure costs for pig farming facilities have increased even more sharply, by 40–50%. Consequently, farms are finding it increasingly difficult to remain profitable even when maintaining previous production volumes.

The situation is further complicated by an oversupply of slaughter pigs in Germany’s domestic market, where sales opportunities remain limited. Demand for pork remains weak both domestically and in export markets. According to AMI, meat processors are reducing purchases, while supplies of certain pork cuts exceed market requirements. Another factor has been the reduction in trading days at the end of October due to public holidays in several German federal states, further restricting sales volumes.

Industry representatives warn that a prolonged period of purchase prices remaining below production costs could trigger another wave of pig farm closures in Germany. During the COVID-19 pandemic, the country lost around 10% of its sow breeding and pig fattening farms annually. The current situation poses risks of further reductions in production capacity, as many farms lack sufficient financial reserves to sustain prolonged losses. A recovery in sector profitability will depend on stabilizing pork prices, reducing excess supply and lowering production costs.

Tags: prices, Germany, pig