Tuning maker Tönnies does not get the Scholarship Prize locked

Price formation on the pig market in January is mainly dictated by a tight pig supply. In response to this, slaughterhouses are using different strategies to deal with this situation, varying between significant increases and significant reductions by slaughtering less. German slaughterhouses are searching and 'experimenting' with price formation.

After the pig price (North/West) stabilized at 3 euros in week 1,52, sentiment in the Netherlands and Germany changed into a friendly market that was preparing for an increase. The internet stock exchange definitively showed the way on Tuesday by increasing by 2 cents to 1,62 euros, after the quotation had also recorded a nice plus in the previous week. The pigs were absorbed smoothly at the beginning of week 4 and in response to this the Vereinigungspreis in Germany increased by no less than 5 cents to 1,57 euros. However, such an increase was a step too far for the slaughterhouses and that is why Tönnies, Vion Germany, Danish Crown and Westfleisch are offering a 'Hauspreis' from Wednesday. Westfleisch does pay its regular suppliers slightly higher, because the slaughterhouse uses a monthly pig price for this.

Despite the fact that the supply is not wide, German slaughterhouses charge a reduced price. According to the ISN, the representative group of German pig farmers, the tone was mainly set by Tönnies on Wednesday. When Tönnies announced at 4 o'clock on Wednesday afternoon that he would not go along with the increase of the North/West committee, the other major players immediately followed suit. In the past, slaughterhouses reacted less tensely to each other's price formation, but in recent months all eyes have been focused on Tönnies, according to the ISN. Given that Tönnies has more than 25 percent market share in Germany, this is more or less the only slaughterhouse that can make such a statement. The ISN says that it is not acceptable that Tönnies can also block a rising market and that other slaughterhouses meekly follow the direction from Rheda-Wiedenbrück in the state of North Rhine-Westphalia, the place where Tönnies' head office is located. , be chosen.

The reason why slaughterhouses issue a Hauspreis is mainly due to the poor meat market. The slow sales within Europe in particular are the reason why the meat market is unable to create room for pig prices. Demand from retail is not gaining steam in 2017. Even lower meat prices are unable to stimulate demand. Sales to Asia are therefore certainly no longer a bonus, but have become a serious pillar of the pig market.

Even though the meat market is not running smoothly and German slaughterhouses are trying to close things down, the DCA Stock Exchange Price 2.0 has announced an increase for week 5. This is mainly due to the tight supply. The price for slaughtered pigs has increased by 2 cents to 1,48 euros, while the price for live pigs is also two cents higher and amounts to 1,17 euros per kilo. A