Pork prices: clash between farmers and retailers

pork prices: clash between farmers and retailers

The sharp drop in pork prices continues to cause strife between farmers and the food trade.

Farmers’ president joachim rukwied complained in the "augsburger allgemeine" that farmers are currently receiving 1.19 euros per kilogram of pork, more than 40 percent less than at the beginning of the year. "At this ruinous price, every pig farmer is making massive losses"."Since prices in the retail trade are stable, "we assume that good money is being made within the food chain on the backs of the farmers," rukwied criticized.

The farmer president also complained about frequent lure offers in supermarkets: "we are aware that there have to be promotions now and then. But the constant advertising with low prices is unacceptable."

The federal association of the german food trade (BVLH) rejected the criticism. The drop in meat producer prices since the beginning of the year has several causes, said BVLH spokesman christian bottcher. The outbreak of african swine fever in the federal republic had reduced demand, especially from china. At the same time, sales to the catering industry and to large consumers have collapsed due to the corona crisis.

The food trade has remained as a stable sales channel for meat and sausage. But they can’t make up for the shortfalls in the other areas, bottcher emphasized. Germany has exported just under half of its pork production so far, he says. In such a situation, it is quite normal that prices come under pressure. "Sales can only be boosted by offers," says bottcher.

An aldi spokeswoman stressed that the company was ready for constructive solutions. However, all participants along the value chain, from producers to slaughterhouses to retailers, had to be involved. Ultimately, however, this is a regulatory task that cannot be solved by the market participants "among themselves". The traders alone are not responsible for the price formation on the world market and thus also for germany.

The current situation is influenced not least by the emergence of african swine fever among wild boar in brandenburg and saxony. As a result, pork exports from all over germany to important markets outside the eu have collapsed. Problems for pig farmers also cause bottlenecks in abattoirs due to corona outbreaks in pig farms.

The federal and state agriculture ministers will hold a video conference this friday to discuss the tense situation on the pig market.