DCA BestPigletPrice responds to German surprise

The piglet market has been experiencing shortages since November. As a result, the demand from pig farmers cannot be met. In the period from early November to mid-February, the piglet market, in the broadest sense of the word, increased by around 15 euros per piglet. The quotation leveled off somewhat from mid-February. Despite this, even when supply was not in proportion to demand, the quotations in weeks 7 to 9 were close to the maximum. In those weeks, the piglet market mainly encountered resistance from the fattener, because the pig price was locked down.

Visible increases
Pig prices in the Netherlands and Germany have now risen to around a cent per kilo. The expectations for the coming week are also positive. This has created some space on the piglet market in the past few weeks.

In Germany, the piglet price rose again by one euro on Monday afternoon to 60 euros per piglet. This increase was contrary to expectations, because the trend report predicted a sideways shift. The 60 euro in Germany is the highest price in living memory. The previous record, of 58 euros, dated from the spring of 2012.

Same as winter period of 2011/2012
The price movement in the German piglet price these weeks is relatively similar to the winter period 2011/2012. Then the NordWest quotation finally reached the previous record of 58 euros (see chart). Even then, the quotation started to grow from the fourth quarter onwards and the price eventually reached the top in the months of March and April.

In the following months, May, June and July, the piglet market declined again and the German piglet price fell to just over 40 euros per piglet. Such a scenario is not in prospect for this year. That's how the expectation is.

Vion must correct this 
Vion tried to make up for last week's mistake on Monday afternoon. As a result, they have increased by 5 cents to 1,66 euros. Last week Vion only increased by 2 cents to 1,61 euros. It was striking that the price in the rest of the Netherlands rose by 3 cents. By doing some extra money on Monday afternoon, Vion is carrying out repair work. Sales on the European meat market are particularly positive. At least, that's what the slaughterhouse says. Due to price pressure from the US, the increases in Europe are less likely to be reflected in China.

The unexpected plus in Germany also frees up space in the Netherlands to go even further on top of the DCA BestPigletPrice. For week 13, the GDP amounts to 57 euros per piglet, which is a plus of 50 cents.