DCA BestPigletPrice easily finds its way up

Anyone who wants to sell piglets on the open market in mid-January does not have to look for buyers. Piglet prices continue to rise, not only in the Netherlands but also in surrounding countries, as a result of the shortage. In Germany, for example, the piglet price for week 3 increases by one euro to 53,50 euros and the trend report also predicts an increase of one euro for this week. In Germany, the extreme piglet shortage is expected to continue at least until the end of February. Austria also reports a weekly supply with shortages of up to thousands of piglets compared to other years.

Since 2010, the number of sow farmers in Germany has shrunk by 12 percent. In Lower Saxony, also an important sales market for Dutch piglets, the number of farms has since shrunk by a third. Many sow farmers stopped, especially in 2015 and early 2016, and the consequences of this have been clearly visible on the European piglet market since the end of 2016.

What does have somewhat of a dampening effect on rising piglet prices is the slower pig market. Pig prices are at acceptable levels in mid-January, but high piglet prices must be taken into account. Historically speaking, manure sales costs are at the top of the price range. This means it is for masters maneuvering remains in a relatively tight wiggle room. Nevertheless, fatteners continue to actively ask for piglets, because on the one hand the stables need to be full and on the other hand because expectations on the pig market - in the broadest sense of the word - are predominantly positive.

There are few frozen stocks throughout Europe and exports can still benefit from good demand from Asia. This means that slaughterhouses in Europe would like to see the hooks filled to ensure sufficient supply. The European demand is somewhat disappointing, but given the calendar this should not be a surprise. Vion's pig price for week 4 is unchanged at 1,53 euros per kilo. According to Vion, there is a normal supply, but the weights are generous. It remains quite a challenge to make the pigs profitable, both within Europe and outside Europe. Still, the bottom of the pig market feels strong and a German price increase is a feasible option on Wednesday, or at least this is what is being heard in the corridors.  

Given that the piglet supply is very tight and that the price in Germany does not yet have a ceiling, there is sufficient credit available on the piglet market to take another step upwards. That is why the DCA BestPigletPrice for week 4 increases by one euro to 52 euros per piglet.