Overweight plays tricks on the pig market

Almost everyone on the pig market had thought that a price reduction was planned in the short term. This does not alter the fact that a lowering can fall raw on the roof. Especially among fattening pig farmers. The market has taken a downward turn not only in the Netherlands, but also in Germany. The German pig price fell by €0,05 to €1,40 per kilo. A similar reduction has occurred in Belgium.

A positive starting point is that the Internet exchange remained at €15 per kilo on Friday, December 1,43, with 5 of the 8 lots offered having been traded. It is currently expected that German slaughterhouses will not necessarily want to reduce prices further, although the market remains unpredictable. A reduction of 3 to 5 cents is also possible, especially now that the stabilization of the price until the first week of January has failed this week.

Pigs that are too heavy
Despite the fact that slaughterhouses are slaughtering in full swing, it is not easy for the Dutch trade to place pigs. In many cases it is a matter of trying and measuring. This has been the case for weeks, which is clearly reflected in the slaughter figures. It is because the pigs in the Netherlands are much too heavy. Almost every pig farmer can register pigs in advance and this is currently being put to good use. On average, the slaughtered pigs in the Netherlands are more than 2 to 3 kilos heavier than in previous years. Some traders even report a weight difference of 4 kilos.

A reduction was necessary to keep the slaughter lines running until Christmas, some traders believe. Certain parts of the pig currently have to be frozen, for which slaughterhouses do not yet have a market. With this large supply, the market simply cannot afford slaughterhouses to slow down the pace. Then the situation might have escalated between Christmas and New Year, or else in the first weeks of 2018. Short-term pain is better than a dormant market in the new year, or so the thinking goes.

Reductions are also occurring on the meat market, although there are differences between the various components. For example, the waist, shoulders (front) and bellies have fallen in price by €0,05 per kilo this week.

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Last week's reduction caused a lot of controversy. Nevertheless, a further reduction is unavoidable for the coming week. The DCA Exchange Price 2.0 for slaughtered pigs will change by 2 cents to €1,29 per kilo. The price of live pigs drops 1 cent and amounts to €1,03 per kilo.