Inside: Pig Market

Where do all those pigs come from?

14 November 2017 - Wouter Baan

The pig supply in the Netherlands has been quite ample for months. So broad that there must be a special reason for it. And it is.

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To find out why there are so many pigs in the Netherlands, we have to look at Germany. In the first three quarters of 3, Germany imported 2017 million pigs (finishing pigs, sows and piglets), according to figures from the German AMI. This is a decrease of 11,8% compared to the same period last year. This decline is mainly due to a significant drop in the number of imported pigs from the Netherlands.

12

procent

fewer fattening pigs to Germany

More than half of the pigs and piglets that Germany imports come from the Netherlands. In the period from January to September, 6,2 million pigs went to Germany, according to AMI. Compared to the same period in 2016, this is a decline of 4%, or more than 200.000 pigs. Denmark is the second most important supplier of pigs in Germany. However, Danish exports remained virtually stable with 4,92 million pigs and piglets.

Exports of fattening pigs are down
The figures from RVO (Netherlands Enterprise Agency) show a smaller number. According to RVO, 5.689.373 pigs, piglets and sows crossed the German border in the period from January to September. That is a decrease of 2% compared to last year. The shrinkage is a result of the decline in the export of fattening pigs. This number has shrunk by as much as 12% to just under 2 million. The number of piglets (+4% to 3,37 million) and sows (+10% to 255.553) do show a significant increase.

The slaughter hooks in the Netherlands have been well filled for months. This is due to the declining export of fattening pigs. For example, 3 and 180.000 more pigs were slaughtered in the first 200.000 quarters, compared to the same periods in 2016 and 2015. The slaughter lines also worked overtime in October and pigs were shifted weekly. In the past 5 weeks, 1.560.000 pigs have been slaughtered, an increase of 6,4% compared to 2016.

High slaughter figures, red markings
Until week 26, this year's slaughter was still regularly below last year's level. Not anymore after that. The pig market made a turning point in the same week, because in week 27 the DCA Stock Price 2.0 recorded the first decrease since January. Since then, the quotation has fallen as much as €0,40 to €1,36 per kilo (mid-November). The ample pig supply, in combination with a slow meat market, appears to be a heavy burden for the pig price.

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In week 27, the DCA stock price fell for the first time since January.It can be concluded that significantly more fattening pigs will be slaughtered in our own country this year. This is partly a result of the changes in the payment table at Dutch slaughterhouse(s), which makes it more attractive to slaughter Dutch pigs in your own country. Vion, for example, steers in the Good Farming Balanceconcept to the use of tempo genetics. Fattening pig farmers are responding to this. Sales of these genetics have increased significantly this year. However, Tempo offspring are less popular at German slaughterhouses, which means that more pigs remain in their own country. Duroc genetics from Denmark are also on the rise.  

In the hallways it is heard that Vion has structurally started slaughtering on Saturdays. They did this more often in the past, only occasionally. It seems that Vion in particular is processing more fattening pigs this year, although the other slaughterhouses are also busy slaughtering these weeks.

Tempo genetics in demand 

Germany not more interesting
What is also putting a brake on the export of fattening pigs is the increase in the number of boars in Dutch pig farming. These are more difficult to obtain at German slaughterhouses. Several traders report that it is currently not more interesting, in terms of payment, to bring pigs to Germany.

The pig supply is expected to remain ample in the coming weeks. As the end of the year approaches, slaughter figures usually increase. There is no reason to think that this will be different in 2017. In 2015, 341.000 pigs were slaughtered in the week before Christmas. So far that is a record number. This slaughter figure could easily be equaled, or perhaps even exceeded, this year. 

Visit the database for more figures. 

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