German pork export prices fall 21% amid food deflation

Germany's pork export prices fell 20.7% year on year in May, part of a broader decline in agricultural and food exports that contrasts sharply with surging energy costs driven by the Iran war, according to trade data released by the German Federal Statistical Office (Destatis) on June 30.

The drop in pork prices, which also declined 5.6% month over month, reflects persistent weakness in the European meat sector despite overall German export prices rising 3.4% year over year -- the strongest annual increase since February 2023, Destatis reported.

The fall could reshape trade flows as German processors face pressure from cheaper imports while competing in international markets where buyers seek lower-cost protein sources.

Platts, part of S&P Global Energy, assessed the EU pork marker at Eur2,460/metric ton ($2,805/mt) June 30, a drop of Eur70/mt (2.8%) from the previous month and Eur1,630/mt (39%) year over year.

Food deflation spreads

The pork price decline was part of a wider 6.3% year-over-year fall in food export prices, according to Destatis.

Dairy products showed particularly steep drops, with butter and dairy spreads down 45.2% from May 2025, while milk and milk products overall fell 11.3%, Destatis said.

Cocoa-based products also tumbled 33.1% year over year.

The food price weakness stands in stark contrast to Germany's import price surge, which hit 6.8% year over year in May -- the largest annual increase since December 2022. That divergence suggests German exporters are absorbing higher input costs rather than passing them through to international buyers, potentially squeezing margins for meat processors and food manufacturers.

On the import side, live pig prices fell 26.5% year over year and 8.3% month over month, indicating oversupply conditions that may persist into the third quarter. The cheaper import costs could provide some relief to German processors, though the gap between falling input costs and even steeper export price declines points to intensifying competition in destination markets.