Pork production in Europe steady, Dutch output declines

In the first half of 2024, pork production within the European Union remained stable, despite a slight decrease in sow numbers. The Netherlands, however, experienced a significant drop in production, partly due to buyout schemes and narrowing margins. EU-wide pork production is expected to slightly decline in 2025, with the Netherlands leading this trend. Across the EU and the United Kingdom, a 3% production increase was recorded from January to July 2024 compared to the same period in 2023, driven by an increase in both slaughter numbers and weights.

Price pressure and margins in the European market

Higher production in 2024 led to a decline in pork and piglet prices in the second quarter. Pork prices in the Netherlands and Denmark remain below the EU average due to strong export dependency and competitive pricing policies. While margins in the sow sector were positive in the first half of 2024 thanks to high yields, manure disposal and labor costs continue to rise. Feed costs are also expected to increase due to higher agricultural commodity prices, despite globally high maize and soybean stocks.

Export decline and changing demand from China

Pork exports from the EU and the United Kingdom decreased by 1% from January to July 2024. This was mainly due to reduced demand from China, which lowered its imports of European pork cuts by 13%, though by-product exports rose by 23%. Although higher export volumes are expected in the second half of the year, uncertainty remains regarding potential Chinese import tariffs. Meanwhile, exports to other markets, such as the Philippines and South Korea, rose, helping to somewhat stabilize demand for European pork.

Rabobank.nl