German Dioxin Scandal Grows

17/01/11 -- The German dioxin in feed contamination saga is turning into a "scandal within a scandal" said Agriculture minister Ilse Aigner after almost a thousand more farms were closed over the weekend, according to this report from the BBC.

The short-term effects of this are not good. German pork, eggs and chicken consumption has plummeted following the outbreak of the news, and slaughterings are likely to increase further after this latest development.

"German pig producers have seen their prices fall by more than £28 a pig. The dioxin scare has also had a knock-on effect on British cull sow prices, which have fallen 10p a kilo in the last few days," according to Pig World.

The dioxin scare is the latest kick in the nuts for many pig producers who, faced with soaring feed prices simply don't have the time to sit and wait for pig prices to recover.

Meanwhile this may be the last straw for pig producers on the continent, who are exiting the industry "left, right and centre" according to my pig nutritionist mate Phil Baynes, faced with the impending added expense sow stall ban on Jan 1st 2013.

That may be good news for British producers in it for the long-haul, but there looks like being a bit more pain to endure first.

Meanwhile, the implications for feed demand within the EU are there for all to see. The National Pig Association forecast EU pigment production to decline by almost 900,000 MT this year, and more more than a million tonnes each in 2012 and 2013.