The pig market went deep in the dust last week. The result is that the imbalance between the fattening pig farmer and the propagator threatens to derail. Following the Beursprijs, the DCA BestPigletPrice (BPP) also received a knock.
There are free piglets hanging above the market that characterize the overall sentiment. In that respect, the situation on the piglet market is no different from the weeks before. The only difference is that pig prices fell dramatically last week. The cards at the pig market have also been poorly shuffled for this week.
The measure full
Fattening pig farmers have been kept busy all year, with the expectation that the expensive piglets would be reimbursed by slaughterhouses. Nothing is less true. The focus of quality is increasingly shifting to price.
Also within fixed connections. With the right quality, fattening pig farmers are willing to remain loyal to their breeder, but not at all costs. According to traders, price is increasingly becoming an issue.
Short shrift, or gradual decline?
Everyone agrees that the DCA BestPigletPrice should be reduced in price. Once again because the German piglet price is in a downward vortex. The North/West committee corrected the piglet price for last week by €18 on Monday afternoon, September 2, to €55 per piglet. A downward trend of €3 per piglet has been declared for this week. In the previous weeks, the allowances had to take a beating. In Germany there is talk of a market that is too full.
In the Netherlands, opinions differ as to whether the BPP should be brought back in one go, or whether a gradual decline is better. The trade agrees that the imbalance between breeder and fattening pig farmer must be straightened out. The DCA BestPigletPrice has no choice but to drop significantly by €1 to €3 per piglet.
Vion: nickel off
Vion slaughterhouse corrected the pig price by €18 to €0,05 per kilo on Monday afternoon, September 1,61. According to Vion, the decline is due to a large supply of heavy fattening pigs and a poor meat market. Meat prices for the front and bellies are falling faster than the other parts.
The slaughterhouse had expected more from the demand that would arise after the holiday period. Demand from Germany and Eastern Europe in particular is disappointing.