German sow industry faces structural crisis and rising farm exits

Germany’s sow‑holding sector is confronting a deep structural crisis. Although the Initiative Tierwohl (ITW) has recently registered an additional 7 million piglets—enough on paper to meet demand—experts warn that the underlying problems run deeper. Around 5,000 German sow farms must invest in new deck centres by February 2029 and modernise farrowing facilities by 2036; upgrades can exceed €1.5 million for a 300‑sow operation, a cost many can’t absorb after years of weak profitability.

The sector also depends on imports for roughly a quarter of its piglets, primarily from Denmark and the Netherlands, both of which are themselves restructuring their pork industries. With the end of the ITW piglet fund at the turn of 2027, market‑based bonuses will replace subsidies, potentially tightening supply and threatening revenue stability for German producers.

Farmers report losing money on each piglet, with prices as low as €37 for a 25‑kg piglet and losses of about €20 per piglet. Slaughter pig prices also fall short of covering costs. In response, sow‑keeper Dagmar Klingelhöller urges contract‑based price agreements among farmers, processors and retailers, and calls for clear origin labeling to prevent meat from being shipped worldwide. She warns that further farm closures, including large operations, are likely unless conditions improve.