The pig farming market - Italy (2023)

1.2 The global and European market

Between **** and ****, world pig production increased from ***.* million tons to ***.* million tons marking a growth of *.*%. In particular, after the slump recorded in **** (***).

Pig production World, ****-****, in million tons Assica China presents the highest figure on pig herd size: ***.* million pigs are raised in China in ****. It is followed by the European Union with ***.* million heads, Brazil with **.* million, Russia with **.* and, finally, Canada with **.* million pigs raised. Top * countries by size of pig herds World, ****, in millions of head USDA Considering pork, the world market in **** is estimated at $***.** billion. Between **** and ****, a compound annual growth rate (***) of **.* percent is projected under which the market could reach and exceed a total value of $*** billion.

Pork Market World, ****-****, in billions of dollars Globenewswire

Europe

In the European Union, the size of the pig herd, as determined by the number of pigs raised, is declining. Between **** and ****, the total number of pigs raised fell from ***.* million head to ***.* million head, marking a *.* percent decline in three years. Pig herd European Union, ****-****, in million head Assica Pork production is also declining. Between **** and ****, pig production in the European Union fell from **.* million tons to **.* million tons (***).

Pork production European Union, ...

1.3 The Italian market

Between **** and ****, the size of pig herds in Italy appears to be declining. During the period under consideration the number of pigs fell from *.** million to *.** million, marking a contraction of *.* percent. While between **** and **** the figure registers a growth (***) between **** and **** this registers a valo of *.*%. Swine herd size Italy, ****-****, in millions of pigs Istat Between **** and ****, the number of pig livestock slaughtered decreased by *.*%, from **.** million head to **.** million head. The decline is particularly concentrated between **** and **** when within one year the number of slaughtered heads fell by *.*% while in subsequent years the annual figure does not change significantly. Head of pig livestock slaughtered Italy, ****-****, in millions Istat In the face of a decline in livestock heads slaughtered, the value of production sold of pork and pork preparations remained essentially constant between **** and ****. **** saw the only notable change with an increase in the value of production sold of **.** percent compared to ****; however, the following year, due to the outbreak of the pandemic, the value of production sold decreased by **.* percent.

Sold production of pork and pork preparations Italy, ****-****, in billion euros Istat

Between **** and ****, the value of pork production grew by **.* percent in Italy. After declining ...

1.4 Import - Export

In Italy, between **** and ****, about ** percent of pork consumption was met by imports. In fact, Italy's self-supply rate (***) fluctuated between **.* percent in **** and **.* percent in **** over the period, with a gradual decline in recent years. Pork self-supply rate Italy, ****-****, % IsmeaMarkets The analysis of trade flows in and out of Italy is broken down by product category. In particular, trade flows of live pigs and pork will be analyzed.

Live pigs

As far as live pigs are concerned, Italy can be defined as a net importer. Between **** and ****, Italy's coverage ratio (***).

Import - Export of live pigs Italy, ****-****, in millions of euros UnComtrade

Italy's meager live pig exports have only * countries as destinations: Germany (***). Countries of destination for live pig exports Italy, ****, % UnComtrade Regarding the import of live pigs, Italy has only European Union member countries as trade partners. Denmark (***). Imports from other countries contribute *.*% to the total. Main countries of origin of live pig imports Italy, ****, % UnComtrade Pork Considering the import-export of pork, again Italy ranks as a net importer, although the values of the coverage index reach higher values in this case. Between **** and ****, the value of pork import increased from $*.* billion to $*.* billion, marking a *.* percent increase. ...

1.5 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in price indexes. The sectors related to pork production and pork consumption are not exempt from this increase.

As for the consumer price index for pork, between January **** and October **** this increased by ** points. Over a period of ** months, consumer prices increased by ** percent. Compared to ****, the increase stands at **.* percent.

Consumer price index for pork Italy, ****-****, base ****=*** Istat

The increase in consumer prices is merely a reflection of the increase in production costs. With regard to meat processing and preservation, between January **** and September ****, the producer price index increased by ** points, representing an average increase of ** percent. Therefore, the increase in production costs is double that of consumer prices. Compared with ****, this industry has experienced a cost increase of **.*%. Producer price index for meat processing and preservation, excluding poultry Italy, ****-****, base ****=*** Istat The analysis in the previous point shows that Italian pork producers import a large portion of the raw material. Analyzing the import price index for the meat processing and preservation industry reveals an additional factor contributing to the increase in consumer prices. Between January **** and September ****, the import price index ...

2.1 Demand in Italy

In ****, pork gathers **% of Italians' total meat consumption. Poultry meat appears to be the most consumed (***) thanks mainly to the weight covered by chicken meat consumption. With **% of the total consumption, beef meat is the second most consumed by Italians. Percentage breakdown on meat consumption by type Italy, ****, % IsmeaMarkets Between **** and ****, average household spending on pork consumption increased from ***.** euros per year to ***.** euros per year (***). However, while between **** and **** average spending grew by *.*%, between **** and **** this contracted by *.*%.

Average annual household expenditure on pork consumption Italy, ****-****, in euros Istat

Per capita pork consumption seems to follow an opposite trend to that for average household expenditure. Between **** and ****, per capita pork consumption fell by *.* percent. However, in this case, while between **** and **** consumption appears to be declining (***) between **** and **** this grows by *.*%.

Per capita consumption of pork Italy, ****-****, in kg IsmeaMarkets Analyzing Italians' spending between **** and ****, pork is the only one among the main meats to show an increase in both spending (***). As for poultry meat in the face of an **.* percent increase in expenditure, consumption volume falls by *.* percent, while for beef, expenditure increases by *.* percent but consumption falls by *.* percent. Change in expenditure and purchase volumes, breakdown ...

2.2 Demand drivers

In order to analyze the drivers of pork demand in Italy, the age and gender of consumers are considered.

Age

Pork consumption in Italy appears to be strongly correlated with the age of consumers. As shown in the graph below, a reduction in pork consumption can be seen as the age of the individual advances. In ****, while **.*% of younger people consume pork at least once a week, this percentage drops to **.*% among the over-**s.

Pork consumption at least once a week, breakdown by age group Italy, ****, % Istat

Gender Pork consumption then also turns out to be correlated with the gender of the consumer. In ****, **.* percent of men consume pork weekly while among women the share drops by * points to **.* percent. Looking at the medium term, between **** and ****, weekly pork consumption declined more among men than women: among the former, the share of consumers dropped from **.* percent to **.* percent while among women from **.* percent to **.* percent. People aged ** years or older who consume pork at least once a week, breakdown by gender Italy, ****-****, % Istat

2.3 Geographical distribution of demand

To analyze the geographical distribution of demand, a map was created with the percentage of people aged * years or older who consume pork at least once a week in each Italian macro-region.

The South presents the highest value: more than half of the population (***) consumes pork weekly. This is followed by the Center and the Islands, where **.*% and **.*% of the population consume pork at least once a week, respectively. Not far behind in percentage terms is the Northeast with **.*% of the population. Finally, in the Northwest just **.*% of the population consumes pork weekly.

3.1 The market structure

To analyze the market structure of pig farming, the number of farms, the number of livestock and the geographical distribution of livestock are considered.

Between **** and ****, the number of pig farms in Italy decreased. During the period under consideration, the number of farms decreased from **,*** to **,***, marking a contraction of **.* percent. The trend is negative during the entire period and the decrease in herds is constant between years.

Swine herds Italy, ****-****, in thousands IsmeaMarkets Unlike the number of herds, the evolution of the size of pig herds is fluctuating between **** and ****. During the period, the number of pigs raised decreased from *.** million to *.** million, a decrease of *.* percent. However, while between **** and **** the number of pigs raised grew by *.* percent in the following two years these decreased by *.* percent.

Number of pig farms Italy, ****-****, in millions of pigs Istat

In terms of the composition of the Italian pig herd, in **** fattening pigs weighing more than **kg account for **.*% of the total number of breeding animals; this is followed by piglets weighing less than **kg accounting for **.*% of the total. Cows weighing between ** and **kg and sows account for **.*% and *.*% of the total, respectively. Finally, boars account for *.*% of the ...

3.2 The value chain

3.3 The main actors

A list of the main businesses specializing in pig farming is offered below:

Pro Sus Pig Producers Cooperative: founded in ****, is an Italian company specializing in pork production. The company aims to provide the highest quality and service to its customers, which include processing industries, large retailers and end consumers. ProSus offers a wide range of products, such as anatomical cuts, fresh hams, and third and fourth range products. It manages more than **,*** hectares of land to grow grain for pig feed, ensuring feed traceability and supply chain sustainability. In addition, ProSus adopts strict quality, hygiene, food safety, and environmental standards, implementing certifications such as UNI EN ISO *****:**** and FSSC *****.

Azienda Agricola Filiera Uno s.r.l: Founded in **** and located in the Po Valley, the company specializes in pig farming. The company responds to the growing demand for traditionally reared pigs in Italy, using selected breeds such as Large White, Landrace and Duroc, which offer lean, well-formed cuts. iliera Uno places special emphasis on animal welfare, ensuring an environment in the herds that is suited to their psychophysical needs, including adequate space, games, showers and resting areas, in accordance with Italian standards and European regulations dedicated to animal welfare.

Società ...

3.4 Transformation

Considering the animal slaughtering sector, excluding poultry, between **** and **** the total number of farms decreased from *,*** to *,*** marking a decrease of *.* percent. After declining between **** and **** (***) in the following years, the sector shows signs of recovery, marking a +*.*% between **** and ****.

Non-poultry meat and slaughter product production enterprises (***) Italy, ****-****, in numbers Istat

The following is a proposed list of the main players active in the slaughterhouse and slaughter product production sector:

Martini Alimentare s.r.l: founded in ****, has established itself as an important player in the agribusiness sector. Specializing in the production of meat, the company focuses mainly on pork, chicken and rabbit meat, following all stages from selection to breeding to slaughtering and processing. In ****, the company opened one of the largest and most modern plants in Europe for the production of innovative products and research and development, strengthening its position in the industry and expanding its production capacity.

O.P.A.S Società Cooperative Agricola: founded in ****, to date it collects ** percent of Italian pig farming, highlighting its significant presence in the sector. The cooperative operates mainly in the "Pink Valley" region, which includes the Po Valley, Lombardy, Emilia Romagna, Piedmont and Veneto. Its mission is to meet ...

4.1 Type of the offer

As has been the case with other animal species, pigs have also experienced a decline in the number of Italian breeds in favor of more productive foreign breeds. There has been a replacement over the years of the many native breeds and populations, such as the Cinta Senese and Casertana, with improved imported ones such as the Large White and Landrace. And it is precisely the latter two breeds that are the mainstay of the Italian swine scene. Generally speaking, it is possible to group all species into two macrocategories:

Heavy pig breeds: generally intended for the production of cured meats. They weigh from *** kg to *** kg and are slaughtered around *-** months of age. Light pig breeds: intended for the production of meat for consumption. The pig is slaughtered when it reaches a weight of ** kg -*** kg, around *-* months of age.

Breeds used for heavy pig production are:

Large White: is the best known and most appreciated breed worldwide for its significant aptitude for meat production, high yields at slaughter, earliness, speed of growth and prolificacy. In Italy it is the breed with the highest consistency and is mainly used for heavy pig breeding. Duroc: it is the ...

4.2 The prices

The analysis of prices related to pig farming is broken down by each stage of the supply chain: orgini, wholesale, retail.

Prices at origin

In ****, prices at origin for pigs weighing between **-*** kg and ***-*** kg reached *.** euros per kg and *.** euros per kg, respectively. Compared with January ****, prices increased by **.* percent and **.* percent, respectively. However, it is possible to show a decline in prices from March ****.

Price at origin for slaughter pigs Italy, ****-****, in euros/kg IsmeaMarkets

Wholesale prices Considering two of the main meat cuts derived from pig slaughtering, fresh leg and loin Padua Cut, between **** and **** it is possible to show an increase in wholesale prices of **.*% (***), respectively. Again, starting from the third month of ****, a decrease in average prices per kilo can be seen for the two cuts analyzed. Wholesale price for some meat cuts Italy, ****-****, in euros/kg IsmeaMarkets

Consumer prices Finally, analyzing the prices at the last stage of the supply chain, retail, it is possible to see a general increase in prices here as well. Looking at the consumer price index for pork, between **** and **** this rose by **.* points, reflecting an average **.* percent increase in consumer prices. As visible in the ...

4.3 New supply trends: precision breeding

Precision Livestock Farming (***) is the application of industrial process engineering principles and techniques to livestock farming, with the ultimate goal of monitoring, modeling and managing animal production.the animal is then seen as a "product," and algorithms collected by specific sensors translate responses measured directly on the animal or in its environment into key indicators; the outputs produced by the technology soon become useful information for the farmer.the ability to provide customized diets and improve environmental control, enhancing productivity and livestock welfare, is provided by individual animal care. Animal identification can be implemented by methods that have different operating principles:

infrared rays, which are based on optical examination and consider shape, form and color simultaneously; electromechanical, such as using surface acoustic waves; electronic, such as using a microchip.

Some of the main uses of precision animal husbandry in pig farming are:

Water intake monitoring: monitoring water consumption, using specific meters, is one of the simplest and most effective tools that the farmer can use to monitor the performance of his animals. Water intake by pigs can be detected at the shed, sector, stall or individual animal level. A discrepancy between predicted and measured water consumption can be immediately visible, allowing ...

5.1 The legislation

The market for raising and slaughtering pigs, as well as for other animal species, is regulated by European and national laws and regulations. Some of the main laws and regulations in Italy are:

Breeding

Council Directive ****/***/EC: establishes minimum standards for the protection of pigs. Council Directive ****/**/EC: on the identification and registration of pigs. EC Regulation ***/****: regulates official controls to verify compliance with feed and food law and animal health and welfare rules. EU Delegated Regulation ****/****: establishes rules on establishments keeping land animals and hatcheries, and traceability of certain animals. Legislative Decree of July *, **** No. ***: provides for the implementation of Council Directive ****/***/EC. Legislative Decree of October **, **** No. ***: provides for the implementation of Council Directive ****/**/EC.

Slaughterhouse

Council Regulation (***) ****/****: on the protection of animals at the time of slaughter. Council Regulation (***) */****: establishes guidelines for the protection of animals during transport and related operations.

6.1 Segmentation

• Cooperativa Produttori Suini Pro Sus
• Cooperativa Produttori Suini Pro Sus
• Azienda Agricola Filiera Uno s.r.l
• Granterre s.p.a
• Fratelli Beretta s.p.a
• Martini Alimentare s.r.l
• O.P.A.S Società Cooperativa Agricola