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The German weight burdens the whole of Europe

We are closing the financial year at the minimum level in the whole year, in a turbulent setting that will need three or four weeks to clarify itself.

Thursday 2 January 2014 (4 years 2 months 22 days ago)

In our last comment we pointed out that the price seemed to have reached its ground resistance level. It is well known that Man proposes and God disposes... or what would be the same in this case: Germany did not share this opinion, and its three consecutive drops in the price per kilogram of carcass (- €0.06, - €0.06 and - €0.08!) have confirmed this.

The message of the leader is clear: ‘I have lots of pigs and I want to sell their meat before anyone else does...’ The rest of the countries will not be able to do anything more that to try to adjust its markets to this new reality.

We are closing the financial year at the minimum level of the year, in a turbulent setting that will need three or four weeks to clarify itself. We will end the Christmas holidays with a lot of pigs that have been held up, and some weeks of full activity will be needed to absorb the superabundance. We will have to do the best we can during these few next weeks, always looking to Germany with the corner of our eye.

We hope that by the end of January the situation stabilizes and that the emerging financial recovery, dressed with some favourable news (the opening of the Russian market?), allows to recover the quotation towards more attractive values.

2013 has been, generally speaking, a good year for the farmers. The whole of the price has been much better than that of the previous year (especially during the first half of this year), and we would really wish that the final balance sheets of the future years could be as good as those of this year.

Globalization, German leadership, worldwide competition, interconnection of markets, interdependence...: these are concepts that we have mentioned frequently. The concept of the global village has come and is here to stay.

The end of year is always a good moment to make assessments: we think that this is the moment to reflect about the efficacy and the competitiveness as the real keys for the survival. Errors are always expensive, and concept errors are normally fatal.

We wish to all our readers and to those who contribute to 3tres3 a Happy and Prosperous New Year.

Let’s make ours, at least in part, the maxim written by Charles Dickens: “I will honour Christmas in my heart, and try to keep it all the year.”

Guillem Burset

Guillem Burset


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