What do the developments in the pig market mean for the DCA BestPigletPrice?
The improving piglet trade in recent weeks has calmed down somewhat. The importing countries are offering back, while Dutch fattening pig farmers are expressing resistance to further increases. This is logical, because the recent changes in the pig market and slaughterhouses may still have unpleasant surprises in store.
In Germany, a slightly increasing demand is noticeable. Although on balance there is enough supply to cover demand; partly due to weak demand in southern Germany and in states such as Bavaria and Baden-Württemberg. All in all, it does not look like the North/West piglet prize will change its place this year. The trend report for this week is again unchanged, while the quotation for last week remained the same at €41,50 per piglet.
In Europe there is a seasonal decline in supply. This has been reflected in the quotations in Northwest Europe (the Netherlands and Belgium) and Spain in recent weeks. Due to the reductions in the pig market However, few traders opt for a further increase. This means that the DCA BPP remains the same at €38 per piglet.
Vion will not reduce further
After Vion was the first slaughterhouse to announce a reduction last week, the pig price remains the same this week at €1,43 per kilo. Vion talks about a meat market that is slowly picking up due to the Christmas demand for parts in the fresh segment (tenderloins and rib fillets). On the other hand, the slaughterhouse is struggling with disappointing sales of hams and bacon. Moreover, there is talk of a continued ample pig supply.
The market already assumed that Vion would not make another reduction, as other Dutch slaughterhouses only partially followed suit. A German reduction is in the air, various traders hear.