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May: prosperity for the farmers

If no disturbing health factors appear, this year will be remembered as a very positive one.

Monday 2 June 2014 (4 years 6 months 11 days ago)
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Mercolleida gets to the end of May with 2 moderately upward market sessions. The Spanish price still leads in Europe (and it has done so for quite a long time) and it will go on like that in the medium term.

In Germany, the price rose by +8 cents on 23 May, and it repeated on 30 May. France halted its drop in prices (in May, the French calendar is full of holidays), and all seems to tell that June will bring price increases in Spain, as traditionally happens.

prices

Comparison of the prices paid to the producer

The farmer has an excellent margin, but it will even see it improve. If no disturbing health factors appear, this year will be remembered as a very positive one.

The Spanish abattoirs are having a hard time to contend with the highest price in Europe, slaughtering the pigs that they find and exporting a great part of their production to markets with much cheaper prices. This does not seem the ideal scenario for the abattoirs, and, indeed, it is not.

The carcass weights diminish week after week, the abattoirs resign to kill the available pigs and the hot weather that is to come will entail delays in growth.

In the last week of May, some thousands of Breton pigs have been slaughtered in Catalonia, showing clearly that prices in Spain are much higher.

North America is still caught up in the crisis due to the porcine epidemic diarrhoea. Weeks go by and, for the moment, its effects in Europe seem limited. There are some price rises of some cuts in the Asian markets, but nothing more worth mentioning for now.

A certainty: the margin of the Spanish farmer is guaranteed and assured for the following months. This is an excellent piece of news for them.

Good pearls are scarce, but the fisher that finds one reminds its glow for life.

Guillem Burset

Guillem Burset

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