A pig (illustration). - PHILIPPE HUGUEN / AFP

The rise in pork prices, caused since last year by the sanitary crisis of African swine fever, is set to last, estimated Wednesday the interprofession of cured meats (Fict). This epizootic has resulted in "a shortage of pigs, hundreds of millions of pigs have disappeared in the world", causing "a spike in the prices of cutting parts amounting to 140% of the price observed at the beginning of the year, especially following a huge request from China, "said Bernard Vallat, president of the Fict.

"All the experts agree that the prices of pork and cutting parts will remain very high in 2020 and that the situation we experienced in 2019, somewhat put under wraps by the Covid-19 crisis , will start again, "he said.

Swine fever: 2,000 pigs leave Brittany by plane to go to China https://t.co/lEJZRFUfMd via @ 20minutesEco pic.twitter.com/DGICxQGFhm

- 20minutesEco (@ 20minutesEco) March 11, 2020

These tensions on the pork market "weakened" most of the delicatessen companies in 2019, causing their margins to melt: the raw material represents 50 to 60% of their manufacturing costs, recalled Mr. Vallat. "Fortunately, the Egalim law (Food law supposed to ensure a better distribution of value) had instituted the possibility of publishing indisputable indicators on the evolution of prices," greeted Mr. Vallat.

A welcome rise 

In light of these indicators, "the distribution companies, under pressure from the public authorities, agreed to renegotiate the contracts that had been signed at the start of the year", while pork prices were historically low, said Mr. Vallat. This "catching up" of prices made it possible to avoid "the disappearance of a number of SMEs established in the regions and which have know-how whose loss would have been irreversible", underlined Mr. Vallat.

If between September 2019 and May 2020, "the price of pork fell by 20% in connection with the Covid crisis, the price of cutting did not drop, he said, denouncing a shift between the price of pork and the price of the cutting pieces ”. For the coming months, the price revision clause permitted by the Food Act according to the fluctuation of raw materials, “will be an essential provision both for the survival of businesses but also for the good health of distribution businesses "Concluded Mr. Vallat.

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