Asparagus season does not help pig price yet

Things continue to rumble on the German pig market now that Tönnies and Vion are offering a 'Hauspreise' for the second week in a row. The basic price at these slaughterhouses is €1,42 per kilo, while the German pig price (VEZG) is €1,45 per kilo. This price difference is causing annoyance in both Germany and the Netherlands. Once again because the market is not perceived as very negative.  

Cleverly timed
The timing of Vion and Tönnies did not come out of the blue. There is significantly less sex in Germany around the Easter weekend. The slaughter lines were shut down on both Good Friday and Easter Monday, causing the pig supply to have increased somewhat. This makes it easier for slaughterhouses to pay less these weeks, without the supply immediately decreasing drastically. An attempt is being made to Vion and Tönnies to pass, by placing the pigs ready for slaughter at other German slaughterhouses.

This passing action generally goes quite smoothly, because there was never an 'Easter prop' in Germany. There seems to be a shortage again in southern Germany. However, this observation deserves a comment; the majority of pigs are slaughtered in the west. Now that the broken slaughter weeks are some time behind us, it is unlikely that Tönnies and Vion will announce a 'Hauspreise' for the third time in a row next Wednesday. Especially because the German offering is not extensive. This theory is not a certainty; After all, it was expected that the German quotations would reach parity last Wednesday. The Dutch pig trade is not confident that peace will return. 

Slaughter weight down
In the Netherlands, the average slaughter weight increased last week (+0,60 to 97,20 kilos). This is due to missing a slaughter day at Easter. Seen over a longer period, the average slaughter weight actually decreases. According to Dutch slaughterhouses, slaughter weight has fallen again this week. However, there are still plenty of pigs that cannot all be placed, even though slaughter is taking place at full speed. 

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The heaviest pigs are off the market, as the trend is downwards. Asparagus season has started
The European meat market is now cautiously looking upwards again. Due to the approaching asparagus season, hams are more popular, resulting in slightly higher prices. This is a positive starting point, since the hams weigh heavily (approximately a quarter) in the value of the carcass. The prices of attorneys are also increasing. Outside Europe there is an opposite trend. The Sino-American trade war so far it has mainly been disruptive. The pig sector in the United States (US) is namely dump actions launched in other Asian markets. 

All in all, the market is not yet ready for a price increase. The DCA Exchange Price 2.0 remains the same at €1,34 per kilo for slaughtered pigs, while the quotation for live pigs remains at €1,07 per kilo.