Dec. 12 (Bloomberg) -- French pork prices are moving closer to the cost of production after increases in recent weeks, France’s national hog-breeders federation said.
Producer prices have risen at a time of year typically “not very favorable” for pork, the Federation Nationale Porcine said in an e-mailed statement today. Prices have been insufficient to cover costs since feed expenses started rising in the summer of 2010, the group said.
Prices for live pigs rose 1.5 percent on Dec. 8 to 1.367 euros ($1.81) a kilogram at the Marche du Porc Breton in Plerin in western France, up from 1.347 euros on Dec. 5 and compared with 1.112 euros at the same time a year ago. Paris-traded milling-wheat futures have risen 33 percent since the start of June 2010.
“The economy remains precarious for the producers whose treasuries have been depleted by successive crises,” the FNP said. “That’s why the producers will be vigilant in coming weeks about the evolution of the pork prices and the attitude of industry operators.”
Breeders can ill afford a return to “inescapable situations” in which retail promotions of pork resemble “a liquidation” unrelated to production costs, the group said.
--Editors: John Deane, Sharon Lindores
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