European pig production experienced a consecutive contraction in 2023. This marked the second year of decline and resulted in a total decrease of 31 million pigs (-12%) since 2021. Looking ahead to 2024 and the foreseeable future, Gira predicts a continued decrease in European pig production, albeit at a slower rate.
The consequences of this structural adjustment include:
➡️an acceleration in restructuring both upstream and downstream to align capacity with the new market conditions. The extent of this restructuring will differ across production basins, with Northern Europe experiencing more significant changes.
➡️a sustained decline in price competitiveness in international markets, especially in Asia, in the face of North American-origin or Brazilian-origin meat cuts. As a result, the European market is facing heightened competitive pressure.
In this context, the Spanish pig industry has performed remarkably well to overcome structural challenges, utilising its expertise, and material and organisational investments.
While the Spanish sector shows growth potential, especially in terms of productivity, it appears to have reached maturity overall. We expect this shift in dynamics to result in a restructuring of the sector.
Considering that 25% of Spanish pork production is exported outside the European Union, and 30% is sold within the European market, the dynamics of this industry will undoubtedly affect various European sectors, with a notable impact on the French sector.
If you would like to discuss our latest report on the Spanish pork industry, please do not hesitate to contact our experts: Jan Peter Van Ferneij or François Cadudal.
Discover our latest meat industry projects at https://www.girafood.com/reports/meat/
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