Piglet market without supplements does not exist

The extreme demand for piglets has not yet turned into an aversion to piglets this summer. Although it does rub against this. During the spring, breeders have been spoiled with record high piglet prices, including interesting bonuses. Fattening pig farmers, on the other hand, have been confronted with high piglet costs for months. While the hope for a sunny summer, with pig prices of €2,00 per kilo, is in danger of being dashed now that the pig market is cracking. 

German piglet sets the price
Pricing on the Dutch piglet market is strongly determined by Germany, says fattening pig farmer Wim Bruggink from Dwingeloo. According to Bruggink, small propagators are almost impossible to find in the Netherlands, while the large breeders focus on the German market. This means that Dutch fattening pig farmers in principle have to buy a German piglet, which is more expensive. This is often where the problem lies for fattening pig farmers, because the cost price in the Netherlands is higher than in Germany.

Aversion to high piglet prices
The unrest about allowances often arises in the spring when pig farmers compare the results in study clubs. Bruggink: "Propagators often hear the sound of higher surcharges and then act accordingly." According to Bruggink, fattening pig farmers, who express aversion to high piglet prices, can also let their entrepreneurship speak. ''Cheaper piglets are available on the open market, just of a different quality. Cheaper piglets are probably not available if there is no supply available with less money."

Entrepreneurship
That is why Bruggink believes that the surcharge paid on piglets should be in line with the surcharge on fattening pigs. "This is where entrepreneurship comes into play." The northern pork farmer believes that allowances are inherent to free market forces. "There is always something opaque about this." Moreover, the difference between too many and too few piglets is often no more than a wheelbarrow full, Bruggink concludes. "This spring I was able to get piglets very well and the market is not overcrowded at the moment."

German piglet price too tight?
Fattening pig farmers who buy piglets on the German quotation see a gap developing with Dutch prices. From the end of April to the end of July, the German piglet price was €63,00 per piglet. While the DCA BestPigletPrice dropped in early June, the German piglet price remained untouched. The difference between the Netherlands and Germany increased to approximately €10,00 per piglet in mid-July. Normally the price difference is much smaller. 

The difference is in the allowances
The difference between the Dutch and German piglet prices is in the allowances. The basic price in Germany usually reacts quite late. Negotiation space, in case of shortage or surplus, is first sought in the allowances. For example, this spring the surcharge on the German piglet price was €14,00 per piglet. By mid-July there will be little left of this. This means that the German piglet price is not as tight as it seems at first glance.

Price difference too big
Other beef farmers believe that the price difference has become too high. Especially because piglets are offered 'cheaply' on all sides. A wise multiplier realizes that overheated surcharges must also cool down when the mood in the market changes. They believe that a fixed surcharge all year round, where the basic price reflects the market, is best. Although this probably remains a wishful scenario, given the 'seasons' in the market.

A shared cost-benefit construction, in which extremes between the fattening pig price and the piglet price are mutually settled, is not desirable, according to this pig farmer. This does not fit with entrepreneurship.