The French pork butchers on Wednesday raised a new cry of alarm about the outbreak of pigs, which continues with the help of Chinese demand and because of the outbreak of African swine fever. Denouncing "another sharp rise in prices of pork", the Fict (Federation of industrial pork butchers) "alert the distribution and public authorities on the need to reopen trade negotiations with deli companies."
A course that should stay at most for three years
African swine fever continues to spread, particularly in Southeast Asian countries and particularly in China where half of the herd could be decimated at the end of 2019, says Fict, which assesses the rise in prices in France since March to 43% so far. "All experts predict a hog price rising until the end of 2020, and a long-term high, for at least 3 years," said Bernard Vallat, president of the Fict, quoted in the statement.
The profession recalls that the cost of raw materials represents on average 50% of the cost of production of marketed products. "Despite an effort on the part of many retailers, the late and insufficient renegotiations of the first half have economically affected the charcuterie companies," deplores the Fict, which calls for "a rapid renegotiation of their contracts taking into account the recent evolution of pork price ".
The export of pork to China increased by 40% in the first half of 2019, according to Fict, which states that some French companies are therefore faced with partial deliveries and delays in the delivery of their raw materials. "Companies that will not be able to pass the necessary increases from retailers may be in a situation of scarcity," says Fict.
It claims "a non-regulatory adjustment mechanism of contracts", based in particular on the regular consideration of the index of evolution (upward or downward) of the 24 pieces of pork cut selected. French delicatessen-delicatessen group Fleury Michon, which announced Tuesday a net half-yearly loss of 8.8 million euros, has highlighted the soaring prices of pork to explain this result.