Contrary to 2015, EU pigmeat prices in 2016 seem to follow again their seasonal price increase during summer. After a flat start at the beginning of 2016, prices have been going up steadily since the end of April 2016, closely following the price development of the US and Canada. EU pigmeat prices went above the 2015 price level by half May and reached 150 EUR/100kg in mid - June. This price increase is also due to the surge in exports to China, giving some relief to the EU market, and to the tighter balance between EU supply and demand.
After some recovery of its average weekly level in the beginning of January 2016, the piglet price stabilised around 40 EUR between February and the end of May, followed by a slight rise beginning of June, contrary to the seasonal trend.
From the 90 000 tonnes offered to the private storage aided scheme opened in January 2016, only 2 000 tonnes remain in stocks by end of May. Due to the favourable market situation, the impact of destocking on prices was very limited.
EU consumption of pigmeat reached 32.5 kg per capita in 2015, almost 1 kg up compared to 2014. Following the very favourable prospects of EU exports and higher prices, the level of per capita consumption is expected to decrease in 2016 by 1.6%, and stabilise in 2017, more or less in line with the trend over the last ten years.
Friday July 8, 2016/ EC/ European Union.