Further signs of EU supply tightening
Latest slaughtering and production data from Eurostat provide further indications that EU supplies have been tightening.
Although the headline figures show a 5% rise in slaughterings in August, compared with last year, to 21.1 million head, there were two more working days in the month this year. Therefore, this effectively equates to a reduction in throughputs on a like-for-like basis. This is consistent with reports at the time, which indicated that tight supplies were contributing to the firm EU price. It was a similar picture for pig meat production, which was up 6% at a headline level, at 1.87 million tonnes. The slightly faster rate of growth indicates a modest rise in average carcase weights, compared with a year earlier. This took production for the first eight months of the year to 15.3 million tonnes, 1% higher than the same period last year.
Most EU countries recorded rises in their headline production figures in August, with German output up by 5% and most other major producers recording even stronger growth (Spain +10%, France +9%, Netherlands +14%, Poland +12%). In contrast, Denmark recorded a sharp fall in production but this is likely due to different reporting periods in the two years. Early results from a small number of Member States show an annual decline in output in September (with the same number of working days in that month), although again Denmark was an exception.
Stephen Howarth, Market Specialist Manager
Stephen.email@example.com, 024 7647 8856