Genesus Global Market Report France, July 2021

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by: Philippe Mallétroit, Director France, Genesus Inc.

After preserving price stability during the first 5 markets of June with an average price of 1.547 € per kg carcass, the hog market in France has finally followed the very downward trend of the European market, which was first observed on June 9th in northern Europe.

Since mid-June hog market price in France lost 0.202 € per kg (about 0.24 US $ per kg). Pork sector reported aggressive competition from European meats, particularly Spanish pork, offered on the French market at very low prices. Moreover, the packing plants have reported difficulties in passing on the price increase to large retailers.

Fewer pigs have been slaughtered the last past weeks, a reflection of seasonal lows in production but also slow demand from packing plants. Despite end of Covid restrictions and collective catering expansion, the domestic demand is not important and unable to compensate the sudden withdrawal of the largest outlet of many European exporters – China.

Hog prices comparison : 2020 vs 2021

2020

2021

Variation

January

1.523 €

1.201 €

– 21.14 %

February

1.484 €

1.215 €

– 18.13 %

March

1.555 €

1.323 €

– 14.92 %

April

1.491 €

1.442 €

– 3.29 %

May

1.362 €

1.542 €

+ 13.22 %

June

1.346 €

1.533 €

+ 13.89 %

6 months

1.466 €

1.377 €

– 6.07 %

In some European markets, a timid recovery seems to be taking place in connection with the choice of holidaymakers to stay in their country. In some places, better weather is expected to boost demand for grilled pork, but the amount of meat available today remains well above consumption that is still struggling to take off. Despite these few positive signs, pig prices have globally continued to fall, putting the future of many European farms increasingly in peril.

Source : Marché du Porc Breton

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