Spanish pig sector struggles to remain profitable

Production costs have cut profits for the Spanish pig industry. Although the country is currently the largest pig producer and exporter in the EU, with a 5% increase in the country's pig herd, rising production costs, mainly for feed, electricity and labor, are affecting the sector.

From January to November 2021, the total supply of pork to Spain increased by 5% compared to the same period in 2020 due to the growth in supplies to the EU and CHINA , the main destination of pork from Spain, especially in the first half of 2021, when demand China 's Spanish pork fell 43%.

Data released by the GENESUS CEO in Spain, Italy and Portugal reflects a slowdown in shipments to some important markets.

The forecast for 2022 is not easy to make, Ms Vega warns. The covid pandemic is still affecting both production costs and demand, and in terms of supply/demand, supply exceeds demand at the beginning of the year. The slaughterhouses in northern Spain consumed more of this stock than in the south. The supply glut is frozen as MEAT processors wait to negotiate a better EXPORT price.

Spain started the year with a herd of 33 million pigs (+5%), while the number of sows rose by 1% to 2.635 million sows, according to Eurostat. In this context, it is vital for Spain to increase its presence in the international market as the EU single market faces oversupply from Germany and Italy, countries affected by African swine fever in the last year and a half.