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February ends with pig prices at minimum levels: there has not been such a low price since December 2007.
In February we have known that the Spanish pig herd has exceeded the German one. Spain has become the third pig producer in the world, only behind China and USA. This piece of information might seem temporary, but we think that this situation will become established.
We export almost 50% of the pork we produce (let us remember that in May it will be 27 years since the first Spanish pork export, little after the effective incorporation of Spain in the EU), and that important dependence on exports puts us at risk due to the changes in the world commerce.
We have more pigs than ever, and consumption is not high anywhere. Russia closed its borders and we do not expect it to open them. Europe has all the pigs and the pork it needs. The private storage ended and no one finds an outlet. We now confirm that the storage was only useful to support the prices with great difficulty.
There is a total crisis situation in all Europe. We are accumulating more than three months of important drops in price. Easter will come in late March, with holidays and less slaughtering days. From now to Easter we expect little news. After Easter we will have to regularize the delays, and with the good spring weather we should have better consumption. The prices could rise a few weeks after Easter if the slaughterings flow well.
The abattoirs are facing great difficulties to sell all what is slaughtered, and freezing pork to store it is not an option (there is a lack of freezer rooms and money). In order to sell, prices must be sacrificed, and that is what we are doing. Meat is sold very cheap, and let us give thanks because it is being bought. All this is very devastating. A good dose of reality.
We need that the public authorities (the EU authorities) take maters into their own hands and apply imaginative solutions or measures. Many experts tell us that applying restitutions to the export of meat to third countries would be the best option. We cannot go on like this. Those who can will have to do what they can do.
We can only wait for better times. Resist, resist and resist.
As William Shakespeare once said: “Fate is the one that shuffles the cards, but we are the ones who play.”
Guillem Burset
