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Contrary to 2015, EU pigmeat prices in 2016 seem to follow again their seasonal price increase during summer, according to Commission report on the Short-Term Outlook for EU arable crops, dairy and meat markets in 2016 and 2017.
After a flat start at the beginning of 2016, prices have been going up steadily since the end of April 2016. From the beginning of July the EU pigmeat prices went above the 160 EUR/100kg and stabilised around 165 EUR/100kg. This price increase is mainly due to the surge in exports to China and the tighter balance between EU supply and demand. After some recovery of its average weekly level in the beginning of January 2016, the piglet price stabilised around 40 EUR between February and the end of May, followed by a slight rise beginning of June and stabilising again during summer. The EU average price in August was around 43 EUR/head, which is 30% higher than the same period last year. In Spain, on the contrary, piglet prices started already decreasing since half of July, earlier than the seasonal trend, although still largely above prices of last year.
EU pigmeat prices, class E (€/100 kg)
Fuente: DG Agricultura y Desarrollo Rural
Despite a brief surge, feed prices, especially soya, came down again, reducing the feed cost and improving the profitability of pigmeat production. Moreover, the quality of the cereal harvest might be such that a larger share of wheat will go to feed production.
EU consumption of pigmeat reached 32.4 kg per capita in 2015 (retail weight), almost 1 kg up compared to 2014. Due to the very favourable prospects of EU exports to China, there could be a temporary shortage on the EU market as operators favour exports. Therefore, the level of per capita consumption is expected to decrease in 2016 by 1.6% (32 kg per capita) and stabilise in 2017, more or less in line with the trend over the last ten years.
October 2016/ Directorate - General for Agriculture and Rural Development – Short Term Outlook – N° 16/ European Union.
http://ec.europa.eu/agriculture
http://ec.europa.eu/agriculture
