Low pork prices threaten Bavarian pig farms

Low pork prices, high farming costs and cheaper imports are putting pig farmers in Bavaria under increasing financial pressure, BR reports. Many operators say they are unsure whether they can continue running their businesses.

Johannes Scharl, a full-time farmer in the Eichstätt district of Upper Bavaria, currently loses money despite a recent increase in pork prices. About 10 piglets, each weighing around four kilograms, feed beside their mother on his farm.

Investment has not paid off

Scharl built a new barn in 2017, providing more space, outdoor access and improved animal welfare. His farm meets housing category three standards and has received several awards. The barns also have cooling systems, which help pregnant animals cope with the current high temperatures.

But the investment has not yet paid off. The barn cost 1.2 million euros, and Scharl said he would have to renegotiate the loan next year. Borrowing would become significantly more expensive because the original loan benefited from low interest rates.

“That gives me sleepless nights,” Scharl said. The past year had been particularly difficult, he added, warning that farms could not make up for too many bad years. He expects many pig farms in Bavaria to close, especially as other operators face high rents and new requirements to renovate their barns.

Cheaper competition from Spain

Scharl works around 70 hours a week and trains apprentices on his farm. He hopes to eventually hand the business on to his son, but said that farming was not sustainable if farmers did not receive a fair income for their work. He described the current situation as threatening the farm’s existence.

Competition from Spain is significantly cheaper, partly because the rules there differ. Animal-housing conditions are generally below German standards, and Spain does not use housing categories like those in Germany, Scharl said.

Spanish pork is currently remaining in Europe because exports to Asia are not possible due to African swine fever. As a result, large quantities of meat are entering the European single market.

Farmers seek government support

The Bavarian Farmers’ Association also fears that many businesses will close because of financial problems and a lack of prospects, increasing the relocation of pork production abroad. It is calling for rapid government support, including low-cost loans, tax relief, funding programmes and clearer labelling of origin.

The Bavarian Agriculture Ministry told BR that Bavaria would work at every level to ensure pig farmers receive the support they urgently need. However, the ministry did not name any specific measures.