Growth trends in Northern European pig production: the appearance of a new cross-border model

Germany, the Netherlands and Denmark are quickly becoming a single production area with geographical specialization of activities and significant cross-border exchanges of animals. The location of Germany facilitates trade. Its policy of wage moderation increases its industry competitiveness and its exports. Higher prices paid for slaughter pigs have improved the profitability of fattening pig operations and fueled its expansion. Germany imported 9 million piglets and 5 million pigs in 2009, mainly from Denmark and the Netherlands. The exports of live animals reflect a loss of competitiveness of Danish slaughterhouses and strong environmental pressures in the Netherlands. Over the past decade, 7 out of 10 breeding farms have disappeared in Denmark, 6 out of 10 in the Netherlands. This rapid reorganization has left these North-EU countries with modern farms that comply with welfare and environmental regulations and now boast some of the world’s best performances. However, these changes have also resulted in economic (farm debt), social (hegemony of the farm model) and health risks (live animals exchanges). In the future, production should not increase significantly in Denmark or the Netherlands because of environmental constraints. Their specialization in producing feeder pigs will likely continue to support the German demand for extra piglets, and with the probable consequence that a few more small breeders in the South will go out of business. The Northwest, which is largely “saturated” owing to recent and significant expansion of fattening pig operations, will likely experience slower growth because of societal opposition and difficulties acquiring land.