The 2009 price offensive is going on! was announced from the Aldi discount chain stores recently, and the prices were reduced for the tenth time this year. Now at last, the price offensive has finally reached the pig industry.

The information has barely become known, and the major Aldi competitors follow right away: the Lidl, Netto, Penny, Norma and other discount chain stores are also taking their advantage! At one go, fresh pork is sold by 3 to 7 percent cheaper at all discount shops. Aldi leads the way and all others start to run after them straight away. The prices being almost identical, the question suggests itself whether or not price arrangements have been made in advance.

The consumer is expected to laugh last, and he is supposed to be grateful! The prices are going down by as much as 3 percent for minced meat and by no less than 4 percent for chopped pork. Bratwurst, schnitzel and smoked pork chop are reduced by 6 percent; the minute steak and goulash prices are reduced by 7 percent. Altogether, the average consumer may expect savings to level off at below 6 percent. But that is only half the truth. Given a price of 1.35 euros per kg pork, the pig keepers are currently paid about 120 to 130 euros per pig for slaughter. Since the end of August, the producer price has been reduced by more than 13 percent by the slaughter industry! Is it just one half thereof which is forwarded to the customers and is the other half thereof being put in the slaughter industry’s own pockets?

Again the pig keeper asks himself: Will the slaughter industry indeed be unable to enforce higher (or at least unchanged) prices towards food retailing? The slaughter companies again and again emphasize their need to restructure their enterprises and to increase productivity in order to have more to bring to bear towards food retailing. Well then, restructuring is in full swing, and concentration is proceeding. Meanwhile, the three Grandees (Tönnies, Vion and Westfleisch) have achieved a 51-percent market share. Isn’t that enough to be brought to bear? How far do we still have to go with concentration? A ranking was made up of the 100 largest German food retailers in the Lebensmittel Zeitung (food retailers’ magazine). Among the Top 100, 9 meat processing companies are found. While the pig keepers hope for the export of live pigs and while fierce competition prevails among the livestock traders, the Vion Food Group went up to rank 2^nd on the table with its 8.6 billion euros turnover. According to their own statement, Vion plays the leadership role in Europe. Is that to be embodied every now and then by announcing internal prices? Yet, the effect of it leaves a lot to be desired towards food retailing, but it does not towards us the pig keepers!

The farmers’ proceeds have been on a very low level for a long time. Over the past years in particular have the producers’ prices been dreadfully low. Just did things seem to get better again (one had not yet recovered from the financial disaster), and now prices are falling again!? It remains a mystery to us that the producers are given such a small share only; the money obviously is earned at the following levels of the value chain!

This is also proven by the The 300 Richest Germans ranking which was published by the manager magazine last weekend. Owning about 17 billion euros each, the Aldi founders Karl and Theo Albrecht share the top position. Dieter Schwarz, founder of Lidl, follows with his 10 billion euros’ assets, thus ranking third. Lidl is worth it is the advertising slogan; and this certainly applies to Mr Schwarz! In view of such figures, the name of the Aldi pork brand Bauernglück (Farmer’s Luck) is given quite a different nuance. Where then is it found, this kind of luck? We the pig keepers are still in search of it! By the way: Compared to last year, the Tönnies Group advanced to the 176^th rank in the 2009 list, with its 550 million euros. Money can obviously be made with meat. The Risken family as owners of the Stockmeyer establishment hold a tranquil 143^rd position with its 650 million euros. How pleasing an information: them all being so well off!

The food retailing’s market power and the ongoing concentration in the slaughter business together with the pretended helplessness towards food retailing make it increasingly impractical for us the piglet producers and pig feeders to get our piece of the pie. The uncountable terminations of business in sow husbandry make this plain to see! But don’t forget about one important fact: No pig keepers, no pork!