Inside: Pig Market
What is the cause of the fragile piglet market?
The piglet trade struggles, toils and sweats. The demand is not there and the supply is ample. What effects does this have on the DCA BestPigletPrice?
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Almost every trader speaks negatively about sales on the piglet market. It simply lacks a good question. Fattening pig farmers are cautious. There is uncertainty as to whether the current imposition will pay for itself around the turn of the year.
In Germany, the Nordwest piglet price apparently remains stable at €57 per piglet. However, behind the scenes there is some mess going on with the allowances. For the time being, the base price remains at probable, given that the trend report for this week is unchanged.
Spaniards culprit
In the Netherlands the finger is pointed at Spain. The Spanish piglet price is dropping like a stone, for unknown reasons. Of course, the ample supply creates a fragile mood, but there is undoubtedly more behind the halving of the Spanish piglet price, traders argue. But what then? Since the beginning of May, the Spanish piglet price (Lleida, 20 kilos) has fallen, from €56,50 to €26 per piglet in the first week of September. A remarkable price rise.
Due to the evaporating piglet price, Spanish traders are offering plenty of piglets elsewhere in Europe. There is a huge price gap in Northwestern Europe. It is therefore attractive for the Spaniards to sell the piglets elsewhere. It is heard in the corridors that the Spanish piglets are also spotted in Poland. The (fixed) price agreements for Dutch piglets, which are exported to Spain, are therefore also in doubt.
The weak mood on the piglet market means that the DCA BestPigletPrice will not remain dry this week either. The quotation drops by €1 to €47 per piglet.
Vion 'with difficulty' unchanged
Vion's pig price has been at €1,69 per kilo for weeks and will remain there this week. In an explanation, the slaughterhouse speaks of 'with difficulty' unchanged. German slaughterhouses are also negative.
What makes the chance of unchanged numbers high is that no slaughterhouse seems to want to continue the downward trend. For example, Tönnies was already the favorite in July with a 'hauspreis'. Vion may talk the most negative things of all, but is usually following in its pricing.