For weeks, the pig market in the Netherlands and Germany was literally rooted to the ground, waiting for an impulse to set prices in motion. Despite the fact that the meat market is not yet getting ready, the market can still look upwards. An incentive given by a tight supply.
Finally, in week 9, the long-hoped-for price increase on the German pig market came. In response to the rising internet stock market, the Vereinigungspreis in Germany was increased by 2 cents to 1,54 euros per kilo. The increase in Germany is absolutely in line with the market situation. The reaction that the internet exchange gave on Friday by increasing again by a cent to 1,61 euros can be seen as confirmation of the increase.
Given that both the German pig price and the internet exchange recorded a plus of 9 cents in week 2, the bandwidth between the two quotations remains on the wide side. If the internet stock market looks up again on Tuesday, it is certainly not impossible that the NordWest committee will take action again. Some parties already expect that the German pig market will achieve at least the same increase in week 10 as this week.
However, care must be taken against an overly enthusiastic spring sprint, because after all, it is only the beginning of March. The meat market in the Netherlands, for example, has not yet been able to make any improvements in recent weeks. The hams, bellies, backs, shoulders and necks all remained unchanged. The situation in Germany is fairly fragile, because director Tönnies still has to contend with a closed shipping route to China. Tönnies may have agreed to an increase in week 9, but the largest party is and remains an unpredictable factor. Especially now that China is closed to them.
Even though Tönnies can probably make do with some empty hooks these weeks; other slaughterhouses are more than happy to have the pigs. Vion, for example, sends around 4.000 sea containers all over the world every week, and they all have to be refilled every week. The majority of deliveries are made in Asia, with China, Japan and South Korea being the most important sales markets.
Various reports indicate that the pig market has experienced little inconvenience from the 'Carnaval jammer'. The supply was temporarily slightly larger, but on balance the pigs all moved through smoothly and no accumulations occurred. For next week, both traders and slaughterhouses confirm that supply is tight and that the Dutch pig market is also ready for an increase.
Slaughterhouses say that the meat market can currently absorb a small increase, but that too large steps could be counterproductive. That is why the DCA Exchange Price 2.0 increases by 2 cents for the slaughtered pigs to 1,50 euros per kilo. The live pigs also recorded a plus of 2 cents, which amounts to 1,19 euros.
In week 8, the slaughter figure in the Netherlands recorded 295.000 pigs weighing an average of 95,96 kilos. This is 2.000 pigs less than the slaughter figure of week 7. The German slaughter figure again remained below one million slaughters in week 8 and amounted to 996.578 pigs.