Dear readers,
We begin with the good news of our industry:
- According to data from the Report on Food Consumption in Spain consumption of meat and meat products in Spanish households grew again in 2024 , as it did in 2023. Demand for meat and meat products increased by 2.4% , while sales grew at a faster pace, up 3.7%. These increases add to those of the previous year, 6.4% in volume and 14.2% in turnover, so in two years the consumption of meat and meat products in Spanish households has increased by 8.8% in volume and 17.9% in turnover. 19.7% of the total value allocated to the purchase of food and beverages at home was allocated to the purchase of meat during 2024.
- Fresh meat accounts for 72.6 % of the volume of meat purchased for domestic consumption. 98% of Spaniards eat meat with varying frequency, according to the most significant data from the “Opinion Study on the Importance of the Meat Sector in Spain” conducted by Sigma Dos. More than half of the population (52.5%) eats some type of meat two to three times a week, and 28.5% do so more frequently. A further 12.6% eat meat at least once a week, and 4.4% eat it occasionally. Only 1.5% of Spaniards never eat meat. Furthermore, average consumption is very similar between men (52.9%) and women (52.1%).
- A study conducted by the Catholic University of San Antonio de Murcia (Spain), in collaboration with Purdue University (United States), has revealed that bioactive peptides generated during the ham curing process could have functional properties beneficial to health. Specifically, these compounds have demonstrated protect cells from oxidative damage and prolong their survival.
- Meat giant JBS invests 135 million $ in a new sausage plant in Iowa (United States) through its US subsidiary, creating 500 jobs. The facility will produce some 59 thousand tons of sausage each year from processing around 500,000 sows.
The Summer is Magic
The positive evolution is “compensated “ by less optimistic news from Europe. Pig slaughterings in the EU fell by 11% between 2022 and 2023, due to the preceding price crisis as well as huge environmental and welfare pressures. The stocks continued to reduce in 2024, even the pace of reduction slowed considerably. The number of sows was 3% lower at the end of 2024 than a year earlier and pig numbers fell by 0.5% overall.
Surprisingly Spain, which had been increasing production even when other countries were already in crisis, is now reporting a 5% fall in sow numbers, which, at their level, means a fall of -153 000 head. This can explain the increasing demand for piglets on the Spanish market.
The Netherlands reported the second largest decline in this category, with sow numbers falling by 111 000 head.
Production in Germany has fallen significantly during the African Swine Fever crisis and under the political pressure of the former government, now the trend has stopped and the figures are virtually unchanged.
Currently, pig farms in Germany are classified into 5 grades. Grade 1 is normal conditions, grade 2 requires 12.5% more fattening area and the use of at least 3 welfare enhancing elements. In the case of category 3, a 40% larger area, a stable with open front or outdoor runs and straw bedding are required. For category 4 the conditions are similar, but the area is even larger (+100 %) and at least 20 % of the feed must be own or locally produced. Category 5 includes organic farms with an area of 2,3 square meters per animal and all other conditions of organic farming. By a recent decision, retailers have decided to sell meat based on welfare category, not by species. Tönnies has already declared that there are not enough pigs in the 3-rd category, which becomes the basic one in terms of retailer requirements. This is combined with the bonuses for pigs that are born, fed and slaughtered in Germany. While the usual piglet price evolution in this period is downward, the actual evolution suggests that German pig quotation will increase again after the shorter working week determined by the Pentecost day. This could also trigger a new increase in the German piglet price and it may influence also the evolution of the piglet prices in the importing countries.
The main meat producers complained of the weather, but now it is mostly sunny, grill season can really start. For the pig sector summer is magic!
