Genesus Global Market Report: France - May 2019Genesus provides the latest update on the market situation in France. |
Hog market: the price increase continuesThe rise in prices started in early March continues in France and in European countries, following African swine fever (ASF) outbreak in China and Asia, important producers and consumers of pork. Over the last 2 months (from 21 March to 23 May) the hog price has increased by 15 percent from 1,283 € to 1,472 € per kg carcass, a gain of about 18 € (20,14 US $) per head. |
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Over this period, same observation with the price of the piglets: + 27 percent for 8 kg weaned piglet with a price of 29.15 € (32,6 US $) per head and + 34 percent for a 25 kg piglet (2,07 US $ € per kg liveweight instead of 1.54 $ in March). No exception with culling sow price who is at 1.033 € (1,156 US $) per kg, an increase of 31 percent compared to the end of March. This price increase should continue and prices could reach record levels, while remaining at high levels for at least two years; the time that China is recovering from the brutal liquidation of its breeding stock and a decline in production estimated between 25 and 35 percent according to Rabobank. Good prospects for hog producers! And in the other European countries? Same scenario: |
Packing plants struggle to pass on price increases to retailersWhile pig producers are benefiting from the prices improvement, french packing plants seem to have difficulty by increasing their prices to big retailers and supermarkets. FICT (Fédération Française des Industriels Charcutiers Traiteurs) has sensitised big stores to renegotiation of tariffs to cope with increase of pork. Some stores would seem ready.
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