Since last report, from August to date the price has fallen by 0.252 € / Kg, to 1,183 € / kg live weight. While weights have risen to 110.17 kg, is 5.83 kg more than then.This is a consequence of the strong supply that has been. After a record hot summer, now with temperatures back to normal, we see all over Spain that animals are gaining more weight, and putting themselves at levels of last May. Compared with the situation a year ago, the average weight in this week was 105.77, that is 4.4 kilos less than this year and with a value of 1.262 € / kg live weight, is0.079 higher.

       This setback is also happening in the rest of the EU, especially in Germany. The two major European producers, Germany and Spain, started the summer almost at the same price, around 1.40 € / kg live weight.Germans started to lose traction in price in July, while in Spain the strong declines have been happening in the last 7 weeks. Both countries are in the same price range at this point.

       The packing plants are waiting for more price declining. They are recovering margins, but the cold storage continues to be almost empty. At these prices it is not profitable to freeze pork. Although we see these increases in censuses, pork consumption in the EU is not growing.Per-capita pork consumption has fallen to 31.7 kg / year in 2016, and forecasts for 2017 point to a slight recovery in consumption, to 31.8 kg / year.

       As every year, September 28 to October 4, the Zafra International Livestock Show is held. This is specially a show for exhibit and promote the traditional Spanish Iberian Pig. On it, we attended the "Inga Food VII Iberian pig Technical Conference". There were exhibits from all sectors related to the world of the Iberian. Each year we see attendance increase; this edition exceeded 400 attendees.It is a sector in full development and professionalization. In the last years Spain gain a good position on the international markets, with the meat of the Iberian pig in purity and its crossings with Duroc, exporting a "meat of excellent quality”, especially on the Asian market.

       Genesus, meanwhile, has been selecting Duroc animals from lines that fulfill all the essential characteristics to obtain a product of high quality and maximum efficiency in the crossbreeding programs with the Iberian sows. These animals have been exported to Spain from Canada for several years, obtaining excellent results for the producer, the packer and the final consumer.

       After a period of weak prices which lasted for several weeks, the European slaughter pig market is finally stabilising again. Many quotations are able to maintain the balanced levels.On Wednesday, the German leading quotation set the pace with its ability to remain constant and a corrected price level of €1.45 per kg slaughter weight. The backlog of supplies could be depleted almost completely on the German slaughter pig market.Hence, the supply pressure on the live animal market has decreased considerably. Unchanged quotations are also being reported from the Netherlands, Belgium and Austria. This goes for Denmark as well,where the quotation has remained steady for the second time in a row already.

       In France, an unchanged price level is also being reported compared with last week’s values. However, according to what a French market participant states, the French market still is under pressure with the steady quotation which is being politically motivated. The live animals market is well supplied in France, and the French food retailing business appears to be anxious about having to face producers’ strikes in case of a pricecollapse.

       Spanish producers had to record a clear price decrease by as much as a corrected 6 cents. The live animal quantities on offer are very extensive, and sales prices are under pressure. Yet, the Spanish quotation is able to maintain the top rank inthe European price structure of the five member countries most prominent in pig keeping, thereby remaining slightly ahead of Denmark. The quotations are closing ranks altogether.

       The domestic slaughter pig market is continuing to stabilise. Meanwhile, thequantities on offer are again being marketed completely and in good time. Therefore, the situation is expected to remain steady.