Low Prices Threaten Pork Industry Future; Farmers Warn of Mass Farm Exodus
Economy / Finance

Low Prices Threaten Pork Industry Future; Farmers Warn of Mass Farm Exodus

Amid concerns about low producer prices, pig farmers are worried about their future. Dagmar Klingelhöller, a swine farmer, told Spiegel that many operations will have to shut down, stating, “Even large farms are facing financial difficulties.” Klingelhöller runs a farm in Lower Saxony and Schleswig-Holstein that houses 1,300 sows. She is also involved in the network Swine Farming Schleswig-Holstein and serves on the board of the Central Coordination of Trade and Agriculture (ZKHL), an organization connecting trade and agricultural associations.

While additional subsidies could offer temporary relief, Klingelhöller insists that pig farming cannot be a loss-making sector; it must be financially viable. Currently, she reports losses on her piglets, noting that they are experiencing the lowest piglet prices in four years. The central listing price is currently 37 euros for a 25-kilogram piglet, but Klingelhöller estimates a loss of about 20 euros per piglet. Furthermore, for fattened pigs, farmers are currently receiving only about 1.50 euros per kilogram of carcass weight, which is 40 to 50 cents short of covering costs. These financial burdens persist even in higher-standard housing systems that offer more space and controlled outdoor environments.

To advocate for fairer conditions for farmers, Klingelhöller proposes implementing pricing strategies based on advance contracts. Her suggestion is that farmers, processors, and traders should collaboratively determine quantities and prices before production even begins. She argued that this would not constitute central planning, but rather a “fair working relationship.” Additionally, she called for comprehensive origin labeling so that every consumer knows where their meat originated, emphasizing that it should not be shipped from around the globe.