Inside: Pig Market
Saturday slaughter brings the meat market out of balance
A large supply of pigs results in sky-high slaughter figures, making a lot of meat available. What does this have to do with the DCA Scholarship Prize 2.0?
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
For weeks the pig market passed through a dull and flat landscape. Vion put an end to this on Monday, December 4, by reducing the pig price by €0,03 to €1,42 per kilo. Despite the 'reduction rumours', this change was still unexpected. A number of traders had expected this at least a week later. Despite pressure from German slaughterhouses, the North/West committee stood firm by leaving the quotation at €1,45 per kilo.
In the Netherlands, Compaxo (-€0,01 to €1,37) and the Pali Group (-€0,01 to €1,40) partly followed Vion. Van Rooi Meat did leave the quotation at €1,38 per kilo. Apparently the urgency to reduce costs is greater at some slaughterhouses than at others. The German Internet Exchange remained the same on Friday as on Tuesday at €1,48 per kilo, although many lots remained unsold.
Bacon down unexpectedly
Meat processors say the weeks-long high slaughter figures are not favorable to keep meat prices afloat. These weeks, slaughterhouses are slaughtering on Saturdays, which means that a lot of meat becomes available.
Bacon sales to Great Britain unexpectedly dropped in price this week, causing the product to lose €0,05 per kilo, while a new reduction for this part is probably on the way. It explains why the pig price was adjusted at some slaughterhouses. In terms of volume, sales to Great Britain are not described as disappointing.
Lots of pigs, lots of sausage cows
The supply of sausage cows is described as large, which is also reflected in the increasing cattle slaughter figures. Nevertheless, the sow market has remained in place this week.
Due to the large supply of pigs, the slaughter hooks at the various slaughterhouses will easily fill up in the coming weeks. With a full slaughter week ahead and reductions on the way, traders from all corners and corners are being offered pigs. By next week, the majority of the trade will be in a reasonable position, although here and there parties will miss out.
DCA Stock price down
Because the pig market has started to falter, the DCA Exchange Price 2.0 is also becoming out of balance. The quotation for slaughtered pigs drops by €0,05 to €1,31 per kilo, while the price for live pigs drops to €1,03 per kilo.