Slaughterhouses slaughter for cold stores in February

In the broadest sense of the word, the pig market in Europe is experiencing a friendly mood. In southern countries such as France and Spain, this has been paying off for a few weeks now in slight increases due to declining weights in combination with good demand. In the more northern countries such as Germany, Belgium, the Netherlands and Germany, the signs still indicate unchanged, but here too the market is approaching an increase.

Slaughterhouses use the month of February to fill the empty cold stores with meat that cannot yet be sold on the somewhat dormant meat market. In this way, slaughterhouses try to cover themselves for the spring when more delivery obligations arise again. Storing stock is generally a cost-increasing affair. It entails (loss) risks, while it also requires pre-financing. This explains why German slaughterhouses did not go along with the 'Vereinigungspreis' in week 4 and therefore announced a Hauspreis. Dutch slaughterhouses were also difficult to accept an increase in recent weeks.

At the end of February, there is an expectation in the market that pig prices in Northern Europe are also heading for an increase. The supply remains insufficient and as spring approaches - in any case - the demand for meat increases. An increase is probably a matter of time, with patience and moderation being the motto of several parties in the market.