Pork market trends – November 2020
After a series of significant declines in northern Europe, pork prices stabilized last week, as did the German market, which is however very low and still well below other European quotations.
On German farms, the number of pigs on standby is still very high, but it would appear that the surplus is no longer increasing, due in particular to an increase in the activity of the country's large slaughterhouses. On the other hand, some optimistic prospects seem to appear with a possible authorization to work on weekends and holidays, but the carryovers are high and the European market will still be heavily loaded with meat for a long time to come. Despite the recent drop in pork and meat prices, demand remains limited by the absence of out-of-home catering and the closure of major export markets, including China.
In Denmark, the advance payment was renewed. According to ISN, one Danish Crown slaughterhouse has regained its approval to export to China and another slaughterhouse is in the process of regaining its approval, which could ease the current pressure on the European market.
In Spain, the market shows little change compared to the previous month. Supply is high but slaughter numbers are at record levels, driven by a very dynamic export trade. Slaughterhouses are running at full capacity before the traditional slowdown around December 15.
In Italy, pork prices have fallen by around 4 cents. After conceded tariff cuts on the meat market, the resistance of the farmers gave way under pressure from the slaughterhouses. The supply of pigs is higher than the demand. Weights have stabilized after 2 weeks of sharp increases.
In China, pork prices continue their downward trend that started a few weeks ago. While various sources agree to confirm the recovery of Chinese pork production, it also appears that China's needs in pork products will remain high for a long time to come with the growth of the population and the continuing trend of urbanization which is accompanied by an increase in meat consumption, including pork. On the other hand, life in China seems to be getting back on track with the control of the pandemic and demand is back on track.