Spanish pig price is the example for Germany

The start of 2017 will be accompanied by a lot of fluctuating movements, both upwards and downwards . The market is searching, because on the one hand price formation is driven by a tight supply and on the other hand is held back by a sluggish meat market. The course bounces back and forth between these ‘forces’, which means that the pig market is in any case not boring. It is reported from Germany that cold temperatures affect the shortage, but there is also a shortage regardless of the weather.

In week 5, the German pig price will increase by 5 cents to 1,51 euros per kilo. However, given the fact that the German slaughterhouses are not moving along, it remains to be seen whether the increase can stand on Wednesday afternoon. The downward movement that the internet stock market made on Tuesday confirms this thought. Other quotes in Europe show a moderate price movement in week 5. In Belgium and the Netherlands the price increases by approximately 2 cents to 1,42 and 1,40 euros, while the French pig price increases by one cent to 1,53 euros. It is striking that the Spanish pig price, after weeks of stabilization, is suddenly 3 cents higher at 1,53 euros.

In Spain, since the start of the new year, there has been very little talk of a pig plug. Spanish analysts praise the pricing in Spain, which is much more stable than in Germany. For 2017, Spanish analysts are positive for a number of reasons.

• There is a piglet shortage across Europe
• In Northwest Europe, the pig population is shrinking
• The sale of live pigs to Italy is going well
• Spanish exports to China and Japan are still growing
• Spain has a competitive advantage in terms of cost
• The (feed) raw materials markets show a fairly constant development

Due to these indications, it is expected in Spain that the Spanish pig market for live pigs in 2017 will not be lower than 1,20 euros per kilo on average, which is generally a good price. Since 2014, the number of pig slaughters has increased by about 15 percent, which means that the slaughter capacity is barely sufficient. The challenge facing the Spanish pig herd this year is to find a balance between the pig herd on the one hand and the slaughter capacity on the other. All things considered, there is little reason for pessimism in Spain.