EU pig prices remain high during 2011

European finished pig prices remained at a high level through the second half of 2011. Normally, prices fall during the autumn before recovering slightly in the run up to Christmas. This year, there was little sign of the seasonal fall and prices actually increased during October and November. They reached a peak of over €160 per 100kg in early December, their highest level since October 2008. Prices at this level are unprecedented at this time of year and the average was €23 higher than in December 2010.

Production of pig meat during 2011 was around two per cent higher than in 2010, although supplies were becoming tighter towards the end of the year. With the economic situation remaining difficult, consumer demand was subdued, particularly in Southern Europe. Instead, the main driver of firm prices was strong export demand, particularly from the Far East. Disease problems have led to reduced production in that region, most notably in China and South Korea, which resulted in a sharp increase in imports from the EU. Overall, exports of fresh and frozen pork from the EU between January and November 2011 were 25 per cent higher than a year earlier. Exports of processed products and offal rose at a similar rate.