Inside: Pig Market
Pig rights are slowly getting rid of
The price of pig rights is under pressure. Prices have fallen in recent weeks in the east, south and the rest of the region. What is the reason for this and what price levels are ahead?
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The range of pig rights in the eastern and other regions is described as broad. This has caused significant price corrections in recent weeks. One reason for this is that retired pig farmers are increasingly selling the rights instead of leasing them. The latter yields at most a few euros per right each year. Such amounts provide little or no motivation to retain the rights.
However, there is little purchasing interest from the demand side. Especially now that the price is falling, potential buyers are waiting for the market. There are few tax incentives now that the pork price is showing little sign of rising. Rights are currently traded between €60 and €65 per right. Rights are also offered for less on the internet. Although the market is difficult to predict, traders expect the price to drop towards €50 per right.
A lot of uncertainty in the south
In the south region, especially in Brabant, tightened legislation and regulations are creating uncertainty in the market. This means that entrepreneurs are taking a wait-and-see attitude, which can be seen from the purchasing interest in pig rights. The price is also falling here. Rights are traded from €110, compared to €135 six months ago. The price of leasing rights in the south is between €6 and €8 per right. Although this price level cannot necessarily be called high, it still motivates the South to lease the rights.
On balance, according to several traders, the rights market is cautious due to uncertainty. For example, the question is how Brabant pig farming will develop in the coming years. From 2022, companies must meet the province's stricter emission-reducing requirements. Although the number of quitters is difficult to estimate, it is expected that a significant number of pig farmers will throw in the towel. This expectation puts psychological pressure on the price of pig rights; This is also not beneficial for the lease amounts.
Falling prices
As in the other regions, the price of pig rights is also trending downward in the south. However, traders indicate that the range of rights available in the south is less extensive than in the other and eastern regions.