‘Not a great business to be in at the moment,’ was one traders description of the bacon trade this week.
Massive oversupply of raw material is affecting both the Dutch and the Danes in the post-seasonal period.
“There’s just too much meat around and oversupply leads to low margins and, in some cases, no margin at all,” said one Dutch trader.
Across Europe the pig kill is running at the highest level that many in the industry have ever seen.
Demand for both Dutch and Danish remains weak and rumours suggest a further price drop from the Danes this week. However some Danish traders remain optimistic and anticipate improvements towards the end of February.