Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

German minister urges meatpackers to work overtime to clear farm backlog

Published 11/27/2020, 05:47 AM
Updated 11/27/2020, 05:50 AM
© Reuters. FILE PHOTO: German Minister of Food and Agriculture Julia Kloeckner addresses a news conference in Berlin

HAMBURG (Reuters) - Germany's agriculture minister called on Friday for slaughterhouses and meatpackers to work at weekends and on public holidays to deal with a backlog of animals that has built up on farms during the coronavirus crisis.

Industry estimates are that 590,000 animals, especially pigs, are waiting to be slaughtered in Germany, agriculture minister Julia Kloeckner said. State subsidies to store unsold meat are one option but not planned immediately.

"The situation has been sharpened because of corona-related restrictions on the slaughtering capacity in the entire EU," Kloeckner told an online meeting of farming associations.

Germany toughened working and health regulations in slaughterhouses and meatpacking plants after COVID-19 outbreaks.

Farming associations complain this cut slaughtering capacity and that pigs especially are having to be kept longer on farms although they are ready for sale, causing price falls.

Import bans on German pork imposed by China and other countries after African swine fever was found in wild boars in Germany have also depressed prices.

"Prices are also under pressure in Germany's neighbouring countries, especially Belgium, the Netherlands and Denmark, because the loss of third-country exports by Germany is a burden on the entire (EU) internal market," Kloeckner said.

The government is seeking to boost slaughtering capacity. An increase in the backlog of animals has been stopped as more slaughtering capacity was put into operation.

Kloeckner said she has asked Germany's employment minister for a more flexible application of working regulations in slaughterhouses including working on Sundays and public holidays.

Farming associations want state subsidies of private warehousing to store unsold meat, she added.

Kloeckner said she has not excluded this option but the timing is important. This would not be sensible over the Christmas period when meat demand is high.

© Reuters. FILE PHOTO: German Minister of Food and Agriculture Julia Kloeckner addresses a news conference in Berlin

"Mid-January would be a suitable timepoint as demand in this period is from experience likely to be weak,” she said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.