Scholarship price and BestPigletPrice are in line with the market

The DCA Scholarship 2.0 has made an excellent start. As of January 1, 2017, the listing has undergone a number of changes and these are being well absorbed in the market. The DCA BestPigletPrice (BPP) also performed well in the first months of this year.

This is apparent from the public meeting that was held in Arnhem on Monday evening, June 12. When asked whether the DCA BestPigletPrice too high or too low, the hands remained down. A clear signal that the DCA has quoted BestPigletPrice in line with the market. The objective of the DCA BestPigletPrice is and remains to focus on the quality of the Dutch piglet. That is why "tight" is quoted, as it is called in market terms.

No exchange of allowances
Given the extreme piglet shortage last spring, the market conditions were challenging. For example, a shortage of piglets in some weeks caused unrest in the market, resulting in rising premiums. However, there will be no exchange of allowances. According to Jan Schuttert, chairman of the advisory committee, the buyer, seller and intermediary are free to agree on the surcharges in every transaction. 'When allowances rise, they can also fall,' says Schuttert, who emphasizes that allowances must be in line with the market.

The DCA BestPigletPrice has increased by 23 euros from the beginning of January to last week (week 9) to a record level of 59 euros per piglet. That sentiment on the piglet market is changing can be seen from this week's quote. The DCA BPP dropped Monday namely with one euro to 58 euros.  

DCA Scholarship 2.0 sets the tone
Also the DCA Scholarship Price 2.0 has had challenging months, during which the market was in flux. On balance, the quotation has increased by 0,28 euros to 1,74 euros since the beginning of this year. The slaughterhouse quotations move upwards in the same rhythm. A signal that the DCA Stock Price 2.0 is a determining factor for the Dutch pig market.

Development of the Dutch pig market 

Stable summer period?
In addition to pig farmers, the pig trade, feed suppliers and advisors, the Dutch slaughterhouses were also well represented in the room. On the question of pig farmers whether the plans by Tönnies should be seen as a threat in Russia, the slaughterhouses replied soberly. This can be both an opportunity and a threat. Russia may one day become a net exporter, but that is not the case now.  

However, the slaughterhouses emphasized that the revenues of by-products in China are under pressure. On balance, the slaughterhouses expect a reasonably stable summer period, although there are some tensions in the meat market. It is therefore difficult to predict the position of the pig price in October. 

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Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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