European pig producers face financial crisis amid oversupply

European pig producers are facing significant financial losses due to oversupply, weak demand, and rising production costs. In Germany, slaughter prices have fallen to approximately 1.45 euro per kg, while production costs exceed 2 euro per kg, resulting in losses of over 55 euro per pig.

In Spain, farmers have been selling livestock below production costs for nine months, averaging a loss of 18 euro per animal. The situation is exacerbated by African Swine Fever (ASF) limiting exports, increased production in China, and competition from Brazilian meat. Industry experts warn that if supply is not curtailed, the crisis could persist into 2027.

The crisis is also impacting Poland, where domestic prices often fall below German levels due to market dependency on Western Europe. In Denmark, a high number of pigs awaiting slaughter has led to discussions about utilizing processing plants in other European nations to manage the surplus.