K&H: significant price drop in the pork market

“There is an extremely dynamic price change taking place on the pig market right now. Prices have practically fallen by 10 percent in one month and have now fallen below production costs in several countries”

– said Zoltán Demeter, head of K&H’s agricultural business.

“There are two particularly decisive reasons for the decline: on the one hand, the introduction of Chinese punitive tariffs may have made European exporters uncertain, and on the other hand, supply in the EU has increased due to seasonal slaughter. The decrease in demand and the increase in supply have thus put pressure on prices, as a result of which the short-term outlook is less favorable: according to many, the low price level may even last until February. can last. This is why the current period is primarily about adaptation and flexibility. In order to maintain competitiveness, the focus must be on conscious cost management and a stable export strategy. Despite the temporary difficulties, it is expected that prices will return to their usual levels in the longer term.”