Prices of 70 Euros per Piglet and 2 Euros / kg Pig Mature For Slaughter Required

Nederlandse Vakbond Varkenshouders (NVV), Danske Svineproducenter (DSP), Vereniging Verakenshouders (VEVA) and ISN Interessengemeinschaft der Schweinehalter Deutschlands (ISN) discuss about package of measures with regard to crisis management on the European pig market. – No significant changing is expected to occur in the medium term. – Questions regarding animal health and EU legislation about pig keeping were put on the agenda.

(ISN; Hardenberg / NL) – 16 representatives of the pig keepers’ lobbies from Germany, the Netherlands, Denmark and Belgium met in Hardenberg / NL for a two-day top-level talk Tuesday and Wednesday last week. This is a clear indication of how serious the situation is on the pig market, says Wyno Zwanenburg, Chairman of the Dutch pig keepers’ organisation.

The four organisations agreed on the fact that the situation on the pigs-mature-for-slaughter market proves to be desolate. In view of increasing corn prices (90 percent increase within a year’s time) and of misuse of power on the part of the major European slaughter companies, pig keepers in North-West Europe meanwhile have their back to the wall. This is what is collectively felt within the organisations. Although the producers’ prices had undercut the year-ago prices by 10 percent in Belgium, Denmark, the Netherlands and Germany last year, the consumers really did not stand to benefit from the prices, Zwanenburg stated. He de-scribed this to be a scandalous situation, which shows how unblushingly the major slaughter companies, the processing industry and food retailing abuse their market power at the expense of consumers and farmers. Therefore, the NVV had asked the PVE (Productschap Vee, Vlees en Eieren) at the beginning of March to demand the EU Commission for a pan-European tracing of the disposition of margins within the pork value chain.

In order to meet concerns with regard to the immensely increased feeding-stuff costs or to be able to produce in an at least cost-effective way, a German piglet (28 kg live weight) would need to generate revenues of about EUR 70, said Detlef Breuer. From that, however, the producers still were light-years away: At present, a sow farmer had to cope with a EUR 25 loss per piglet. For those farmers who work on a regular basis, feeding 200 sows, this meant a monthly total loss of about EUR 10 000.

ISN Board Member August Rietfort stated that the German pig feeders needed to realise a price of EUR 2 per kg slaughter weight in order to be put in the position to pay the price men-tioned above to the piglet producers. But up till now, the prices were far away from that (more than 50 cents), and still the farmers could not see the light at the end of the tunnel.

In those countries where the majority of pigs are held, it is anticipated that - contrary to ex-pectations – the stock densities will not be reduced in the medium term, although the market might be relieved that way. Reducing the sow stocks by a maximum 5 percent as a result of breeding process (i. e. more piglets littered per sow and year) would rather be compensated to a large extent, supposed Torben Poulsen, DSP Chairman. Compared with the year before, the EU even anticipated the pig stocks to increase by 0.3 percent within the first six months of 2008.

Industry experts all over Europe expect pork production to be further reduced in the long run as a consequence of prices remaining on too low a level – a development which massively emerges in the Eastern European member countries at present. Apart from supply going back in a barely noticeable way, giving a boost to exports from the EU would be essential for prices to recover fast, maintained VEVA’s Kristof Verschelde. In this connection, however, it was a worry to everyone that the Euro grows ever stronger. Through this, export opportunities were obviously being hampered.

For this reason, the leading European pig-exporting countries’ hopes for a trend reversal to occur on the pig market mainly rested on export. Many a surprise had come from the global market in the past, said Hans Aarestrup. Demand on the domestic- and export markets were rather expected to increase due to the UEFA Cup to be held in Austria and Switzerland in summer, the settlement of the meat conflict between Poland and Russia as well as to the Olympic Games to be held in China.

The producers are increasingly worried about what happens in the grain trade and on the soy market. Those products become ever more expensive on the global markets, and apart from that, the EU Commission makes the situation get even worse by increasing import duties and by adopting a restrictive attitude towards genetic engineering. This way, says Franz Schulze Tenkhoff (ISN), the problem of high feed costs is getting ever more severe, leaving the European pig keepers having to cope with competitive disadvantage. In this respect it was an essential thing to do indeed for the EU Commission to put things right as fast as can be in order to re-establish international competitiveness pertaining to feed costs. All those unfortunate discussions about practising no tolerance at all needed to be brought to an end soon; the more so with regard to the fact that animals fed on GMO (gene modified organisms) feed were being imported into the EU anyway from the USA, Brazil or Argentina.

On top of that, various questions were discussed about with regard to pig health, such as: castrating piglets without anaesthetising them before; the status of the Aujetzky disease in the Netherlands; respective national situations relating to salmonellae diseases. Taking a look at the AK-10 status striven for in the Netherlands (aiming to have the country free from the Au-jetzky disease), Zwanenburg continued to report that – regardless of all efforts which have been undertaken so far - this might be realised no earlier than at the beginning of 2009. The Dutch act on the assumption that another 650 000 to 700 000 piglets a year might then be exported towards Germany (equatable to a 25 percent increase in the number of Dutch piglets exported towards Germany next year, amounting to a total 3.1 million piglets). Those piglets mostly came from farms where about 200 sows were held; as a result of export restrictions imposed on those farms in consequence of the Dutch AK status, those farms had proven to be too high a bureaucratic and financial restriction. Examination- and administration costs were estimated to amount to about EUR 1.50 to 2.00 per piglet, stated Mark Logtenberg.

It goes without saying that the political framework also was discussed about thoroughly. Here, the focus was put on animal transport regulations, group penning of sows as stipulated by the EU and on the Health Check.

About 70 percent of all German pig producers are being represented by the ISN with its 12 000 members. About 1 600 pig keepers are being represented by the DSP (equatable to two thirds of the Danish pig producers). The NVV numbers about 3 000 members, thus supporting about 60 percent of the Dutch pig producers. About 20 percent of the Belgian pig producers are being represented by VEVA with its 1 200 members. These lobbies usually meet twice a year in order to arrange things with each other with regard to political framework and all kinds of issues about the pigs-mature-for-slaughter market. The next 2008 meeting has al-ready been scheduled for the month of November, in the run-up to the Agromek agricultural trade fair to take place in Herning, Denmark.

The NVV participants of the two-day workshop were: Wyno Zwanenburg, Leo Verheijen, Mark Logtenberg, Erwin van de Wielen, Harry Bloemenkamp. Jeroem Verver took part on behalf of the Dutch Rabo-Bank. Torben Poulsen and Hans Aarestrup attended the meeting as representatives of the DSP. Kristof Verschelde, Bart Mouton, Lude van Dobbels and Luc van Puymbroek were the VEVA delegates. Anna-Kathrin Hertrampf, August Rietfort, Franz Schulze Tenkhoff and Detlef Breuer took part on behalf of the ISN.

The meeting was held at the De Groene Belangenbehartinger offices (NVV affiliate) in Hardenberg / NL. De Groene Belangenbehartinger had moved to those offices in November 2007 only. 18 employees are working in the fields of liquid-manure applications, energy, liq-uid gas, quality assurance (IKB Nederland), legal advice, market reporting as well as data evaluation with regard to the pig keepers’ diverse requirements, such as price comparisons or a salmonellae data bank, which is planned to be expanded with regard to detailed, individual evaluation of single carcasses.

Contact:
Katja Ahnfeldt
ISN Interessengemeinschaft der Schweinehalter Deutschlands e. V.
Kirchplatz 2
D – 49401 Damme
Tel.: + 49 – (0) 54 91 / 96 65 – 11
Fax.: + 49 – (0) 54 91 / 96 65 – 19
E-Mai.: ahnfeldt@schweine.net

Photo (from left to right): Harry Bloemenkamp (NVV), Delef Breuer (ISN), Anna-Kathrin Hertrampf (ISN), Jeroen Verver (Rabo Bank), August Rietfort (ISN), Erwin v/d Wielen (NVV), Kristof Verschelde (VEVA), Leo Verheijen (NVV), Franz Schulz Tenkoff (ISN), Torben Poulsen (DSP), Wyno Zwanenburg (NVV), Hans Aarestrup (DSP), Mark Logtenberg (NVV), Bart Mouton (VEVA)