Butchers pushing for substantial decrease in pig prices amid pressure on supply and demand
In recent times, a significant shift has been observed in the European pig market. The larger slaughter companies are demanding a reduction in the pig price due to unsatisfactory pork sales. This pressure is not exclusive to them, as butchers are also demanding a price reduction this week.
The cause of this market downturn can be traced back to China, which has imposed anti-dumping duties on European pork imports. Approximately 100 companies are affected, with varying caution deposit rates ranging from 15.6% to 32.7%. This move has undoubtedly impacted the stock market today, leading to a stagnant pig price of 1.95 euros/kg slaughter weight (SW) since early July.
However, not all European countries are experiencing this price drop. In Denmark, Danish Crown (DC) set the price for the 38th calendar week at €1.73/kg SW, 7 cents lower than before. In contrast, in Italy, producers currently enjoy significantly increased slaughter pig prices.
The market situation is characterised by a clear oversupply of slaughter pigs. This oversupply, combined with the reduced absorption capacity on the demand side, has led to price weaknesses that cannot be ruled out. In Spain, slaughter pigs have become cheaper again, and in Belgium, the Belgian Danis Group is currently paying €1.300/kg live weight (LW), 4 cents less than the previous week.
Despite the market challenges, there are signs of hope. The International Meat Secretariat (ISN) forecasts a potential decrease in pork production in the fourth quarter of 2025, which could support prices and ease the pressure from lack of sales impulses. This decrease is expected due to significantly reduced imports (-45% from January to July 2025 compared to the previous year) and the expectation of lower supply of slaughter pigs due to fewer imported piglets.
Producers argue against a price reduction, citing the slightly increased supply of live animals that is still selling well, according to market observers. This optimism is further supported by the ISN's forecast, which suggests that the stock market today may stabilise in the near future.
In conclusion, the European pig market is currently facing challenges due to oversupply and reduced demand, particularly from China. However, with signs of decreasing production in the future and the continued sale of live animals, there is hope for a market recovery.
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