Pig slaughterings have gone down
Pig production is down in the EU's largest pigmeat market
Against the background of a contracting pig herd in the region, a lack of available animals for slaughter and rising costs (not to mention weak pork demand from China), German processors have struggled to keep up with demand as much as other EU countries and the UK. Reflecting this situation pig prices have risen across the board.
...forcing large pig processors such as Tonnies to cut staff numbers
In the wake of Danish Crown and Pilgrims Pride, Tonnies has announced hundreds of layoffs in reaction to reduced industrial activity and rising costs - in particular energy and feed - which have affected pig producers, processors and vertically integrated players alike. German political figures have added to the fire by campaigning against meat consumption, citing environmental concerns and a national strategy to increase plant-based alternatives. Against this depressed supply situation major processors have reduced production capacity and further invested in automation to reduce their reliance on manual labour.
...and further investing in automation
Tonnies has invested large sums on plant automation since 2020, much like Danish Crown, in what is an established trend for the sector's larger processors.
Keywords: pig production, pig prices, pigmeat, pigmeat market, pig processors, meat consumption, production capacity, automation