Inside Pigs

Piglet sales are not getting any easier

June 11, 2018 - Wouter Baan

The turmoil in the pig market is not doing the piglet trade any good. Although there are not many couples hanging above the market, sales are difficult. What does this do to the DCA BestPigletPrice (BPP)?

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Many fattening pig farmers had set their sights on higher pig prices in recent weeks, so that the relatively expensive price paid in March was somewhat recouped. The higher pork prices seem to be an illusion for the time being, despite the fact that the pig supply is not excessively large these days.

The 'boom price' that the large slaughterhouses have been applying since last week has not done piglet exports in Germany any good. Exporters say that German fattening pig farmers are becoming less and less inclined to stock piglets. Also because the manure sales in Germany causes the necessary problems. There are rumors that some companies will compensate for the overcrowded manure pits in the coming months by stocking fewer piglets. These are not encouraging sounds for piglet sales during the summer months.

Situations differ
Since the pig market is lagging behind, slaughterhouses are also cautiously indicating that the piglet price may have to be adjusted to correct the ratio (piglet costs versus fattening pig price). These sounds can be seen as a signal that higher pig prices are not feasible in the short to medium term. The German piglet price is not showing any signs of decreasing for the time being and will probably remain at €45 per piglet this week, given that the trend report has not changed.

In the Netherlands, the situation varies per trader. While one person manages to complete sales, the other is left with a few couples. The statements from DCA Markets show that the DCA BPP is moving downwards; these are lower than in the recent weeks. However, the market is not yet clear in favor of a reduction, so the quotation remains at €40 per piglet.

Pig price Vion
Vion's pig price at €1,45 per kilo. According to the slaughterhouse, the meat sales markets show almost the same picture as last week. Price pressure on necks and bacon is offset by slightly friendlier sales of hams. According to Vion, the limited supply is the reason why the pig price remains unchanged.  

DCA BestPigletPrice (week 24) Price range Number of problems  Average
€40,00 (approx.) € 38,00 - € 40,00 17 €39,62
Explanation DCA Markets: 
The piglet market is about to take a step back. However, it is still reasonably possible to get the piglets placed, so the listing remains this week. In the corridors it is noticeable that conditions are becoming more difficult; in particular the fact that pig prices are not rising is a downer. Due to the shrinking pig supply, this should be the ideal period for this. This has everything to do with the conditions on the meat market, slaughterhouses indicate. The sale of manure and the purchase of feed also weigh heavily on the pig farmer's balance.

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