June brought far greater challenges for German pig producers than had been expected at the beginning of the month. The industry had anticipated that warm weather, the barbecue season, and several public holidays would stimulate meat demand, but the seasonal boost proved insufficient to revive the market.
Although sales of grilling products increased somewhat, the pork market remained well supplied. An additional challenge was the reduced number of slaughter days due to public holidays, which resulted in regional backlogs of market-ready pigs.
For most of the month, the VEZG benchmark price for slaughter pigs remained at €1.60/kg, but by the end of June it had fallen to €1.50/kg. For many producers, such a price drop during the peak grilling season came as a major disappointment and further worsened the already difficult economic situation on farms.
Weak demand—not oversupply—is the main problem
Analysts emphasize that the current price pressure is not the result of excessive pig supplies. Germany’s pig population remains historically low following several years of herd reductions, while average carcass weights changed very little throughout June.
Instead, the main challenge has been weak demand. While retail sales remained relatively stable, the food service sector performed below expectations. Many pork cuts could only be sold after price concessions, and even traditional barbecue products failed to generate the seasonal momentum the industry had hoped for.
As a result, several slaughterhouses reduced slaughter volumes and processing capacity.
Piglet and cull sow markets also under pressure
The piglet market also experienced a significant downturn. Lower profitability in pig finishing reduced producers’ willingness to restock, making it increasingly difficult to market available piglet batches.
During June, German piglet prices fell from €48 to €40 per head, placing considerable financial pressure on specialized piglet producers.
The cull sow market also remained under pressure. Demand from the processing industry stayed weak, while competitively priced supplies from other European countries intensified market competition. Germany’s largest meat processor, Tönnies, also lowered its purchase prices and reduced slaughter volumes.
Industry looks to China for market relief
One of the key topics in June was the potential reopening of German pork exports to China.
Particular attention was focused on German Federal Agriculture Minister Alois Rainer’s visit to China, where discussions centered on reaching a regionalization agreement for pork trade.
If an agreement is concluded, localized outbreaks of African swine fever (ASF) would no longer result in a nationwide export ban. Instead, only the affected regions would face trade restrictions. For Germany’s pork sector, this would mean renewed access to the Chinese market and reduced dependence on the European domestic market.
Outlook remains cautious
Despite the relatively limited supply of slaughter pigs, market participants do not expect a rapid price recovery.
According to industry experts, future market developments will depend on stronger domestic consumption, improved demand from the food service sector, and expanded export opportunities—particularly the reopening of the Chinese market.
The industry also stresses the importance of promoting German-origin pork not only in retail but also in wholesale trade and the food service sector, arguing that stronger domestic support could help stabilize the market during a period of persistently weak demand.
PigUA.info, based on 3tres3.com