Germany: Fewer and fewer pig slaughtering - prices are rising The weekly slaughter figures in Germany have fallen below the line of 850,000 pigs on average between the beginning of the year and the end of May 2021. In the same period of the previous year 2020, the average was 930,000. The decline began as early as the second half of 2020. The usual seasonal decline in the summer phase was exacerbated by the corona-related restrictions, especially at the slaughterhouses and cutting plants. The ASP-related import ban in China and other Asian importing countries marked a tightening end. A slaughter pig congestion arose until the first two months of the new year. The prices fell from 1.80 to 2.00 € / kg in several stages to 1.19 € / kg in the phase before and after the Christmas holidays 2020.Sinking piglet stalls The slow decline in the number of fattening pigs ready for slaughter in connection with catastrophic sales and rising feed costs led to a drastic decline in piglet stalls. The weekly piglet imports from Holland and Denmark decreased by between 35,000 and 45,000 animals. Imports remain below their previous level to this day. Dutch piglets are increasingly being sold in Spain and Denmark is increasingly delivering to Poland. Calculated on an annual basis, it can be expected that a total of between 1 and 1.5 million fewer piglets will be imported. In addition, there is the decline in German sow farming with around 100,000 animals, which reduces the domestic supply by a further 2 million piglets. This means that the decline in domestic pig slaughtering from almost 51 million in the previous year to 48 million could continue. Falling slaughter numbers in the future The previous lowered piglet stalls are expected to reinforce the usual seasonal low in summer slaughter numbers in the coming months as well.The utilization of the slaughterhooks will be lower despite Covid-related restrictions in capacities. This could result in increased competition for the scarce supply of life. Interestingly, imports of pigs for slaughter from neighboring Belgium, the Netherlands and Denmark have decreased by over 30% in the recent past. Possible causes are the limited slaughter capacities and the lack of sales at home and abroad. The domestic meat demand should increase with the grill weather becoming more favorable and further easing in gastronomy. Increased third country exports with a focus on Asia are not foreseeable for the time being. That will keep future price increases in check.
