European Union pork prices continue to rise on increased demand from China and low supplies due to high feed prices, according to reports.
Pork prices gained 10% to €1.56 (US$2.24) per kilogram through June, the most in almost three years, as corn rose 71% and wheat hit a record on April 20 in London. “Due to the high feed costs, European pig farmers have negative margins pressuring the supply of piglets down,” said Albert Vernooij, an analyst with Rabobank International. “Due to the long time before higher prices are forwarded in the supply chain the effect on consumer prices is still limited but that will slowly start to change in the coming months.”
Per-capita pork consumption in China has grown by 23% in the last ten years, while the sow herd in the UK has fallen 27% in the same time period.