The piglet market has been showing some hairline cracks for some time and these are becoming more and more visible. For the first time since the fall of 2016, the DCA BestPigletPrice is colored in red. The piglets that are left are a problem for many traders.
It is the piglets on the free market who are increasing the pressure. Within fixed connections, supply and demand know how to find each other. However, the remaining flocks are growing by the week. The Netherlands is more sensitive to price pressure on the free market than Germany is. Germany is an importing country, while the Netherlands exports at least 120.000 piglets every week. That the German piglet price remained at 23 euros in week 63 can therefore be explained. This prize is also on the horizon for this week (week 24).
Export instead of imposing yourself
Traders report declining interest from Spain and Poland and a wider supply of Danish piglets in Europe. Danish breeders are concerned about the prices that German fattening pig farmers are willing to pay. A number of closed companies in Denmark prefer to sell piglets in Germany rather than laying them in their own stables. That is why relatively many Danish piglets cross the border with Germany. This is much to the annoyance of Danish slaughterhouses.
The loss of placement space outside the Netherlands and a seasonally increasing supply of piglets means that markets must be found for more piglets. Even within permanent couplings, there are sometimes leftover piglets and these are then placed on the open market. It is not that the Dutch market is "overcrowded", but it is not easy to find free couples places. It takes calling and peddling to ultimately find sales. Fattening pig farmers are increasingly concerned whether they will be reimbursed for the expensive piglet costs in October, when the pigs go to slaughter.
DCA BestPigletPrice down
The Spanish piglet price has already fallen by a few euros to 48 euros in just a few weeks. The Flemish piglet price also chose a downward direction last week. The DCA BestPigletPrice is also unable to escape the increasing pressure and drops by 1 euro to 58 euros.