Hog market in July
In the first two weeks of July, the hog market price has recorded a decrease of 5.3 cents per kg because of the strong turbulences that have shaken the northern European markets. The price then stabilized at 1.293 € per kg carcass during the last 3 weeks of July, for an average price in July of 1,306 €, a decrease of 15.7 % compared to July 2019.
The shutdown during one month of the German packing plant of the Tönnies group in Rheda has had serious consequences for all European markets, but particularly in the north of the EU.
The annual trend remains positive with an average price of 1.442 € since January 2020 compared to 1.363 € for the first 7 months of 2019 (+5.8%). By comparison, slaughter activity in the Western Uniporc Zone (main slaughter zone in France) for July 2020 is higher than in July 2019 and average weights at the end of July were 1.7 kg higher than their 2019 equivalents.
The market seems to improve in August
The supply/demand ratio seems to be reversing in favour of production lately, as anticipated during the market session of Thursday, August 13th. Demand for pork is confirmed while the supply is not excessive. In the last market session on August 17th, the auction price rose rapidly during the sale and reached 1.305 €/ kg carcass.
National Pork Industry Conference This was to be the week of the National Pork Industry Conference (NPIC) at the Kalahari Resort Wisconsin. Instead due to Coronavirus, it has become a virtual conference.
Genesus has been a lead sponsor for twelve years. In that time, we came to appreciate the excellent organization and speakers of the NPIC. This year most importantly we will miss the interaction of the many people at the conference. At the NPIC and other like events we have come to meet and get to know many of the people in our industry. It has enriched us with the knowledge we have learned from these interactions.
As an industry, the pandemic has not only hit many financially, but it has prevented the events such as NPIC that binds us personally in relationships to our industry. We are all diminished by this reality.
As part of NPIC this year, we gave a 19-minute presentation on our feelings on the Global and U.S. markets. Please find below our presentation