The ham should soon cost us more. Although meat prices have been soaring for several months, it is mainly poultry and beef that are most expensive. In one year, the increase reached 10.2% in beef according to INSEE, 14.6% in poultry and 10.5% in lamb. With an increase of 7.3%, pork was relatively spared.
But the price of delicatessen should skyrocket in the coming weeks. This Monday, August 22, the price of pork exceeded 2 euros per kilo in the Breton pork market in Plérin. Since last October, the rise in the markets has been continuous. At the end of last July, pork broke a historical record of 1.86 euros per kilo dating back to March 2001, a time when consumers had turned to this meat in the midst of the mad cow crisis.
There is no health crisis this year, but an explosion of costs with inflation and a sector in the midst of a crisis. Pork, which was sold at 1.25 euros per kilo in the markets in January, has since taken 60%. While demand remains strong for this relatively affordable meat, supply is falling.
10% of pig farmers threatened
If pork is soaring globally, in particular due to the Chinese market, where pork soared by more than 20% in a year last July, the situation is particularly tense in France.
In question, an explosion in production costs driven by animal feed (+25% in one year). Costs that producers do not transfer to retail prices. Pork remains a relatively affordable loss leader in the meats department against rising beef and poultry. Last January, Leclerc’s first anti-inflationary operation thus affected baguettes (at 29 cents) as well as pork chops (at less than 2 euros per kilo).
Pig sold at a loss
According to professionals, the production cost of a kilo of pork is currently 2 euros per kilo, which is exactly the sale price at the current exchange rate. In other words, breeders have sold below this cost of production so far.
A situation that has led many breeders to bankruptcy. The country that typically produces 106% of its domestic pork consumption could be forced to turn further to imports to meet demand.
Aware of the problem, the government launched an emergency plan for the pig sector last January. The Minister of Agriculture at the time, Julien Denormandie, had released 270 million euros to support the coffers of pig farmers. A boost to savings that was not enough to erase the losses in the sector estimated at 440 million euros in one year by Inaporc.
If the price increase is good news for breeders, they are now asking the big retailers to make an additional gesture. Although animal feed should continue to increase in the coming weeks, the sector wants supermarkets to cut their margins in the delicatessen department, one of the most profitable in the meat category.
Source: BFM TV
