Inside: Pigs & Feed
Piglet market down rather than up
The mood on the piglet market is slowly shifting. Exceeding deficits have long since ceased to exist. Nor from too many piglets. The market is in balance, although the first hairline cracks are slowly emerging.
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Just like last week, the piglet market can be summarized in one sentence: a stable market with a price-containing mood. Of course there is more going on in the background. Some parties even report the first signs of oversupply. However, this is not representative of the entire market. There, supply and demand are reasonably in balance. The declining demand from Spain and Italy is fairly easy to place on Dutch fattening pig farmers. Traders who are heard do not mention flocks that remain.
Foreign countries offer back
In Germany, the piglet price remains unchanged at 19 euros in week 63. This price is expected to maintain itself in week 20. Supply is also increasing in Germany, but demand can handle the extra volume. In the south of Europe, such as Spain, the rating is crumbling. The Spanish piglet price (of 20 kilos) fell last week by 1,50 euros to 55 euros. The Spanish bids for Dutch piglets are below price, but this will not affect the quotations for the time being. Also in week 20, the DCA BestPigletPrice remains at 59 euros per piglet.
Last year the piglet market started a seasonal price spurt. In mid-May, the piglet market is at record highs and lower prices are reported. This may take some time, as there is still room in the allowances here and there.
Danish piglet exports remain in effect
In the first quarter of this year, 3,38 million piglets crossed the Danish border. That is a plus of 1,2 percent compared to 2016. Due to the export drive, the number of fattening pigs, from 50 kilos, is down by no less than 8,1 percent. These figures are based on the count of April 1 last.
The Danish slaughterhouses are making frantic efforts to keep piglets in their own country. Following Danish Crown, competitor Tican, the Danish subsidiary of Tönnies, has also imposed a surcharge of more than 8 cents per kilo. Danish Crown is trying to attract new suppliers with a premium of 4 cents per kilo. Tican tries to thwart this.
Pig price Vion
As stable as the piglet market is, Vion's pig price is also stable. For the third week in a row, the country's largest slaughterhouse recorded 1,79 euros. The slaughterhouse says it can draw on a wide range of heavy pigs. However, the meat market (front section) is taking another step back. Last week the shoulders fell 3 cents in price. According to Vion, price pressure on shoulders and necks continues.