European Union-Drop in pig herd.

EUROPEAN UNION- PIG HERD DROPS.

European Union Pig Inventory, December 2008

Last week, Eurostat officials released a comprehensive inventory of the European Union’s sows and market hogs. The good news for all of Europe and North America’s hog producers is the huge drop in inventories of the EU’s 27 countries.

The European Union 27 country sow inventory has dropped about one million sows in the last year and 1.6 million in the last two years – a huge liquidation (10.3 per cent). This decrease of sows is greater than Canada’s entire sow inventory.

EU’s total pig inventory is down approximately 7 million pigs from December 2007 to December 2008. That would be about 280,000 less market hogs a week on average year over year. It’s a lot and will help push market prices higher. Last week for example, Poland’s slaughter price was 66 cents US per lb.

EU-27 hog supplies means less pork tonnage for EU exports, whether it be Japan Korea, Russia, etc. Also, Europe market prices of approximately 66 cents US per lb will give US, Canada and Brazil huge price competitiveness in export markets.

The EU-27 country inventory was counted in December. Our sources in Europe indicate there has been continued liquidation since then. Higher global feed prices over the last 2 years and financial losses have devastated livestock inventories in Europe and the rest of the world. Total meat availability is decreasing. Fewer hogs in Europe helps everyone’s hog prices.