In his analysis published on social media, Czarniak referred to Wednesday's session of the VEZG stock exchange, which brought with it a very large drop in the price of fattened pigs recommended by the association. As he emphasized, the reduction was expected, but its scale is surprisingly large. This also had an impact on the domestic market. According to Czarniak, it is currently difficult to obtain prices higher than PLN 8.50 – 8.70 per kilogram of class E in purchases. As the expert emphasizes, the supply of livestock on the market is not currently impressive, but the turnover of retail chains is poor, and there is no shortage of meat and meat products in stores. What does this mean in practice?
– Just as farmers have often wondered about continuing production, now plants have this problem. Some plants have expanded and modernized to be able to better use their production lines, but poor trade means that they cannot compete for raw materials on price. In other words, at the moment we have too many slaughtering possibilities in relation to the demand of the market, which is choosy in offers of both domestic and imported meat – assesses the spokesman for Polsus.
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As the expert emphasized, the price war and the lack of consideration of the country of origin of meat by chains has resulted in a large part of the raw material on our market coming from imports. Domestic producers are having increasing problems in placing their products in discount stores, whether they are owned by foreign capital or by Poles.
The industry is being eaten up by production costs
According to Czarniak, fuel to the fire is added by the high prices of production resources, especially energy, which are now among the highest in Europe and do not help domestic industry or pig production.
Another problem noticed by Czarniak is the competition from poultry meat:
– It has long been known that pork and poultry compete in terms of price on store shelves, and last week the purchase price of the latter dropped by as much as one złoty! I am afraid that this is not the end of price reductions on our market – assesses the spokesman for Polsus.
According to Czarniak, the future of the market will be decided in September and October.
– If the price does not increase in these months and starts to fall, it will mean that we have another crisis, which will be even more severe for us, because despite relatively high rates, the main part of our income is eaten up by costs, which have also increased over the last 4 years – assessed the expert.
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The industry is in decline. We lost 7 percent of our pig herds in a year
