Pork market: Spain wins - Germany loses The two big pork producers in the EU are changing their positions. So far, Germany has been at the forefront, but Spain will take first place in the future. However, a distinction must still be made between the slaughter figures and the quantities of meat . Due to the lower Spanish average slaughter weight below 90 kg, the Germans were still ahead of the game when it came to meat quantities. In view of the decline in the number of German battles, that will change in 2021 at the latest. While Spanish pork production is expected to rise to over 4.8 million t, German slaughter volumes will drop slightly. What are the causes? Spain's pork industry benefits from several advantages.
- The distribution of production is concentrated to over 50% in the two provinces of Catalonia and Aragon, but with a lot of space.Adjacent stables are at least 1 km apart. The environmental problem is many times less than in Germany.
- Due to the mild climate, stables are much less complex. The wage costs are also lower.
- The restrictions caused by the Covid19 pandemic are significantly lower on the production side (among other things due to climate and concentration) than in Germany.
- The majority of the companies are vertically networked , ie piglet production and fattening operations are privately or cooperatively linked. Contract fattening companies also belong to the appearance. There is also a close contractual relationship with slaughterhouses .
- Powerful organizational units on the marketing side are able to sell the 60% export surplus anywhere in the world. 45% of exports go to third countries with a focus on China.The increasing Chinese sales to China already reach 18% of Spanish production. The Spanish import share of China is 23%.
The disadvantage of Spanish pig farmers is the insufficient feed supply . In addition to protein feed, grain in particular has to be imported. The fluctuating grain harvests are significant up to 50% depending on the precipitation conditions in the individual years. Powerful feed factories have set up with appropriate storage capacities and keep the grain price fluctuations within narrow limits. In Germany there are significant environmental restrictions that will be tightened in the near future by increased animal husbandry requirements. Stable and wage costs are significantly higher in this country. There is a certain advantage in the slightly higher technical production level.The most recent ASF outbreak in Germany is a severe setback for third country exports. Spain, along with other exporting countries, will fill this gap. When China's pig populations have been rebuilt in a few years, it will be too late for German exports. Conclusion: Germany will lose market share in the pork sector.
