Finnish pig production under preassure
In the whirlpool of cost rises and other market effects the Finnish pig production is in a serious crisis. The production has decreased from January to April 2022 about 2% compared to the situation a year ago. However, the consumption is still at the same level than in 2021. How the situation is going to develop - only fortune tellers can say. The number of inseminations has dropped over 10% since the end of the year and at the same time a growing number of sows have been slaughtered. The current number of heads is around 77.000 (81.000 in 2021) sows and it is estimated to be only about 75.000 at the end of the year. There are quite a few producers who intend to quit pig production during this year (10%) and next year (15%). Due to high producing costs the fattener farmers are not willing to take piglets, if they do not have their own cereals in stock from last year. Therefore, the sow farms are struggling with oversized piglets and poor prices.
The slaughterhouses have taken advantage of the Private Storage Aid and increased the amount of frozen meat, but it is not a long-time solution. The money needs to come from the markets and the retailers are not willing to increase their share and consumer prices as required. The ongoing negotiations are making a difference, but not quick enough. The biggest fear is that if the two biggest companies buying our meat do not increase their prices fast there will be bankruptcies by the end of the year. The graph below shows that the producer prices have climbed steadily from February and are expected to grow during the summer even more, but the costs are still rising and the price farmers get is not covering the costs. The average prices are around 204 €/ 100 kg, but the need at the moment is around 250 €.
The Covid and ASF situations are calm. There are a lot of Covid cases still in the population, but as most of the people have got vaccinations and the most vulnerable groups are getting their 5th shot at the moment, there are no patients at the intensive care units. ASF is lurking at the borders and the government tries to kill the wild boars and inform the tourists about the risks of wild pork meat imports.