News article, 29. September 2022
Annual statistics for Danish pig production 2021
Throughout 2021, Danish pig production faced a number of challenges caused by changing demand and instability in the global market.
Read here how this has affected the Danish pig industry.
A sharp fall in demand for imported pig meat in China has resulted in the European pig meat market having to rethink its sales options. The consequences of this have been one of the reasons that the average price for pig meat has fallen in all European countries. In 2021, the Danish price was down and averaged DKK 9.71 per kg/pig meat. We need to go back to 2018 to find a comparable level.
China remains the biggest importer of Danish pig meat
China remained the biggest importer of Danish pig meat in 2021. Exports fell by 120,000 tonnes which corresponds to a fall of 2.3 per cent. Germany was Denmark’s second largest importer of pigs with exports totalling 413,000 tonnes in 2021: just over 200,000 tonnes were live piglets.
Danish pig production’s economic structure
Germany is one of Denmark’s largest importers of piglets for fattening. However, Danish piglet exports fell by 600,000 head over the past year. This is just over a 4 per cent reduction from 2020-2021. One of the reasons for the decline in piglet exports is the outbreak of African Swine Fever in Germany, which has impacted German demand. Another reason is the rise in feed prices. In 2021 alone, the contribution margin – the ratio between the finisher price and the price of feed – was reduced by over 23 per cent, which is the lowest average contribution margin in pig production since 2018.
Danish pig industry accounts for over a fifth of Danish food exports
Nevertheless, the Danish pig industry accounted for a significant share of Danish food exports. In 2021, pig exports accounted for just over a fifth of exports from Denmark’s food cluster. The Danish pig industry’s vision to lead the way in terms of sustainability without compromising on animal welfare and food safety is a competitive parameter. This means that despite a year of economic challenges, the Danish pig industry maintains its position in the global market as a supplier of high quality products.