The market for fresh meat cuts drives slaughter. Profitability of curing recovers but the gap between PDO and generics widens
The profitability of Italian pig farmers engaged in the closed cycle is in cyclical decline in December: the Crefis index (www.crefis.it) in fact marks -7.6%, even if the trend variation remains positive and equal to +1.6%. Once again, the sector's profitability is dragged down by the drop in the prices of heavy slaughter animals intended for the protected product which, in December, lost 7.8% on a monthly basis, stopping at 2.111 euro/kg (-5% the trend variation), combined with the concomitant increase in the costs of pig feed. The drop in the prices of heavy slaughter pigs has also negatively affected the trend in the profitability of the fattening phase of the open cycle which, again in December, marked -5.2% month on month (-2.6% the variation on an annual basis) despite the reduction in the costs of supplying piglets at the beginning of the production cycle. On the other hand, the profitability of the sow phase is positive, with a Crefis index of +4.5% in December compared to the previous month (-9.7% year-on-year variation), supported by the increase in the average monthly prices of 7kg piglets, which reached 70.133 euros/kg, gaining 4.5% compared to the previous month, even if the trend variation remains negative and equal to -11.2%. The trend of the profitability of the weaning phase is favorable, which, again in the period considered, rises by 3.3% on a monthly basis (the comparison with the values of last year is however equal to -11.7%), supported mainly by the stability of the price of 40kg pigs, which is confirmed in December at 2.837 euros/kg (negative trend variation at -15.1%) and by the lower costs incurred at the beginning of the production cycle.
crefis.it
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