IBERICO BACK FAT PRICES ARE SOARING

A new problem arises for buyers of Iberian Back Fat, the year begins in a situation of little supply and rising prices. We had never started February with these price levels, with a campaign in full swing, not even in those years where Russia monopolized the demand and in some year these prices were reached, but always in the last quarter of the year, not in a campaign of sacrifice.

The Regulatory Council of the Protected Designation of Origin (PDO) Jabugo has published, once the year is over, the statistical figures for the year 2022, a year that has been marked by a significant drought in practically the entire country and that has been reflected in the montanera this season.

Thus, in 2022 the number of ‘100% Iberian acorn-fed’ pigs identified in the pastures registered during the 2022/23 montanera season, that is, last autumn, was 25,272, 18% less than in 2021, in which identified 30,842 pigs. This has been due, they explain from DOP Jabugo to the lack of rain during the past year, which has had an impact on a lower production of acorns. “If there is not enough acorn production, the number of pigs is also reduced, since if their only diet is acorns, since there is less, the numbers in the montanera are reduced, since farmers know that they do not have enough food to feed so much animal”.

Although it is true that the production of bacon is not exclusively focused on 100% Iberian acorn-fed pigs, this decrease will have some consequences for this year 2023:
• An important volume order of Kg. of the highest quality back fat.
• A lower supply of iberian back fat than what we identify as +6 cm and as +4 cm, which in a large percentage is produced from this type of pig and which has done the montanera. Soon the normal thing will be to only have less thick back fat, +3 cm or even less thick will be the only option.
• Maintaining or increasing prices at high levels, if not very high.
• If we add to this situation the rise in refrigeration costs for its maintenance and in financial costs, it will be difficult for producers to save product for the last quarter of the year, a time when the sale of Iberian Back Fat is concentrated in a large percentage. and that is when it traditionally reaches the best prices. Starting from the current prices and increasing the costs until that date will make the price absolutely crazy.

This is the forecast that our company makes. We have been one of the major operators of this product for many years, for 25 years and we are very much afraid that we will not be wrong in this prediction. Let’s not forget that Spain is practically the only producer of Iberian Back Fat.

Our advice to consumers of Iberian Back Fat, that they value their forecasts and needs, that they do not think that these prices today are a transitory situation and that they do not wait for the last moment to make their purchase programs, otherwise it will be very easy that when the time comes they will not Find product availability, we don’t even talk about price.
Eating Iberian bacon can become a real luxury at the end of the year 2023.