Situation on the pig market in Poland

Recent months have brought a further drop in the purchase prices of pigs in the EU, including the domestic market. The African Swine Fever (ASF) in Germany and ban on export of German pig meat as well as COVID-19 outbreaks in the German pork processing sector significantly limited slaughtering capacity, leading to an increase in the oversupply of livestock on the market in the EU.

pig behind a fence
©A.Galica

Polish farmers have problems with selling their pigs in Poland or the purchase price is very unsatisfactory. Meat processors in Poland belonging to Animex group announced that they have no place to accept more meat deliveries according to editorial Farmer.pl. Animex is the largest meat producer and exporter in Poland. Their price offer changed to lower from Monday 16th of November(1). Some meat processors in Poland confirmed to import cheaper meat from Germany. Some slaughterhouses introduced limits in purchase of pigs to the amount that can be easily sold (2).

Domestic purchase currently is on an average of PLN 4.98 (approx € 1,11) net per kilogram for pork halves in class E. The prices range from 4.60 - 5.40 PLN net. The current prices are the lowest for almost 5 years. For pigs in live weight, domestic purchase is on an average of PLN 3.92 net per kilogram. The prices range from PLN 3.60 to PLN 4.70 net per kilogram. Such low prices were reported last time 2 years ago in the winter of 2019 (2).

The pig population in Poland in June 2020 amounted to 11.43 million units and was 6% higher than the total pig population in the previous year and 2% higher than in December 2019. The increase in the number of pigs was recorded in all production and use groups of pigs (3).

It is estimated that in 2020, the consumption of pork may decrease from 38,5 kg per capita in 2019, to 38 kg. In 2019 already, slaughter of pigs decreased by about 6% . In 2020, in medium-sized and large companies, slaughter of pigs decreased, when compared to the same period in the previous year, by 13,8%. These decreases resulted from turbulence in the global market caused by the spreading of COVID-19 pandemic which had paralyzed the functioning of many economies including also trade and also from the rising retail prices of meat and meat products resulting in limited demand (4).

The Chief Veterinary Inspectorate in Poland, as of October 16 confirmed nearly 3 554 cases of ASF in wild boars in 2020. The last outbreak, number 103, in pigs in 2020 was reported on October 28, 2020 on the farm where 11 pigs were kept, located in Podkarpackie region (5).

Sources:

1: Article on Farmer.pl

2: Article on Farmer.pl

3: Central Statistical Office, update on pig population as of June 2020. 

4: Market Analysis of meat, June 2020. Institute of Agriculture and Food Economics, National Research Institute.

5: Chief Veterinary Inspectorate