Piglet market has now really reached a turning point

The piglet sales have last week suffered a blow when it became known that the German pig price (the VEZG quotation) had to drop €0,03 to €1,42 per kilo. This was the signal for fattening pig farmers that selling prices are not about to increase for the time being. There are few signals in the market predicting a price recovery, while returns on some fattening pig companies were already under pressure in the first quarter.

This means that fattening pig farmers are looking more selectively at the new stock. Once again because the feed prices increased in recent months and the fertilizer prices stable recording (at a high level). There is a growing supply of piglets in the Netherlands. Especially now that sales to Spain are decreasing every week. The Spanish piglet quotation (the Lleida quotation) fell last week by €2 to €50 per piglet. Further declines are lurking.

German demand is also declining
In Germany, good demand has become weaker. Supply and demand are still in balance, so price reductions are not an option. However, in recent weeks the trend report indicated a possible increase. That chance now seems virtually impossible. The German piglet price (the North/West quotation) remains at €48 per piglet. The Danish piglet quotation is also sideways at (converted to euros) €59,10 per piglet (30 kilos, PRRS-free).

The BPP only entered a downward spiral in 2017 in early June. However, then the prospects for the pig market were much better. This year, the quotation will start to decline in the last full week of April; the BPP drops in week 17 by €1 to €48,50 per piglet. The BPP is now still €0,50 above the German piglet price. It is likely that this difference will be resolved in the coming weeks. 

(Text continues below the chart)In 2017, the BPP went back in price much later in the season.

Vion's listing remains intact
Vion's pig price remains at €1,42 per kilo, with a normal supply. The crux is in the meat sales. According to the slaughterhouse, the attorneys are happy with the deduction; the hams and the forequarters, on the other hand, are difficult to sell. Vion further states that the news from China is bad news as far as sales of European pork are concerned. A falling Chinese pork price, combined with a very wide supply, gives European meat exporters a poor negotiating position.