Guillem Burset

Guillem Burset comments on various current affairs of the European pig market: stocks and private storage, merger of Tican and Danish Crown, prospects on the price recovery…

The prices recover both in northern and southern Europe.

In February, the price should improve, slightly and with difficulty, but it should ameliorate.

We think that administrations must take urgent actions regarding the crisis in the pig sector.

In our sector we know well that if Germany sneezes the whole of Europe catches a cold. Last Wednesday the prices dropped by €0.04 in Germany…

Europe as a whole has a flat depressive profile with the prices in the minimum levels of the last three years.

All the European markets lower the prices very quickly to position their meat as best as possible with respect to its rivals. The search for alternative markets is essential…

September will be a bear market month. We still have to see the pace of the drops.

During July Germany has made a strong challenge that is difficult to process for the whole of Europe.

The low supply sets the pace of the price of pigs, but there are many more factors at stake: multiproduct commercial flow from Denmark to US; Russia has just presented a proposal for the opening of exports from some countries of the EU, etc.

If no disturbing health factors appear, this year will be remembered as a very positive one.

The Spanish price will rise until well into summer, and the range of the rise will depend on Europe.

The future for the European pig producers seems clear and the heart of the matter lies in knowing how the different markets will reposition themselves.

We fear that in the short term, the collapse caused by the Russian closure will become more evident and, that with it, the price will inevitably fall again.

It seems that the price has initiated its spring rise, but many factors intervene. Whilst the Russian borders are still closed the collapse of some cuts (especially fats) will be inevitable.

We are closing the financial year at the minimum level in the whole year, in a turbulent setting that will need three or four weeks to clarify itself.