GERMANY

Germany: FMD case keeps industry on tenterhooks, pig prices drop by 10 cents

Pork

The outbreak of foot-and-mouth disease in Brandenburg is keeping the industry on tenterhooks, informs ISN. Even though no new cases have been identified so far and disease control measures have been quickly implemented locally, a whole series of import bans on German pork have been imposed.

Posted on Jan 16 ,00:25

The closure of the British market in particular has created a new picture, as Great Britain is an important sales market for fresh pork from Germany. The price of slaughtered pigs could not withstand this pressure today and subsequently fell by 10 cents to €1.72 per kg SG. However, trade in German pork can continue within the EU without major restrictions.

Following the outbreak of foot-and-mouth disease (FMD) in the Brandenburg district of Märkisch-Oderland last week, no new cases have been identified so far. Nevertheless, market participants in both the meat and live markets reacted more nervously than initially hoped. In the meantime, several third-country countries have imposed import bans on German pork. After South Korea, Great Britain, Singapore and Canada have now also imposed an import ban on pigs and pork from Germany, among others. The closure of the British market in particular has had noticeable consequences, as Great Britain was previously the largest third-country buyer of German pork. Between January and October 2024, around 103,000 tonnes of pork were delivered from Germany to the United Kingdom, almost half of which was fresh meat.

VEZG price drops by 10 cents

Accordingly, export-oriented slaughterhouses must adjust their calculations for added value on foreign markets. This also has negative consequences for the live market and the VEZG quotation for slaughter pigs fell by 10 cents to 1.72 €/kg SG. After the already significant drop in the quotation by 10 cents last week, this is another hard blow for German pig farmers.

Regarding the consequences of the FMD outbreak for the pig market, ISN market analyst Klaus Kessing stresses: ’’The situation regarding the effects of FMD on the pig market is currently extremely dynamic, so the situation must be continually reassessed. The newly imposed export bans are currently causing uncertainty and, in combination with the already tense situation typical for the season due to the surplus on the live market and the weak demand on the meat market, are having an impact in the form of price pressure. In the longer term, however, the flow of goods is likely to find new ways, similar to what was already the case with the ASF-related bans.’’

Pork exports to other EU countries still possible

However, the EU internal market plays a central role in foreign trade in pork, as around 80% of German pork exports go to other EU countries and only around 20% to third countries. This EU internal trade can continue without restrictions. The EU Commission has laid the foundation for this by confirming in an implementing decision the restriction zones of 3 km and 10 km already set up by Brandenburg. Meat produced outside the restricted zone can therefore continue to be traded in the EU. In addition, the Global Forum for Food and Agriculture (GFFA) is taking place this week as part of the Green Week in Berlin. Representatives of the industry are confident that further regulations can be negotiated with some third countries, with hopes resting specifically on Great Britain.

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