Inside Pigs

Pig farmer waits, piglet price falls

2 July 2018 - Wouter Baan

The prices on the biggenmark have been falling for a few weeks and there seems to be no end in the short term. The DCA BestPigletPrice (BPP) therefore again puts off a significant minus. Please note: the recommended amount (for the fixed costs) has been increased by €1 to €2018 per piglet as of 0,10 July 2,10.

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There is a lack of serious purchasing interest to stem the declining piglet market. In Germany, the price has fallen to €41 per piglet and it is expected that €39 will be recorded next week, as the trend report indicates another reduction of €2.

2,50

euro 

The DCA BestPigletPrice decreases per piglet

The Dutch exporters have noticed that German fattening pig farmers have not been in a hurry to stock up on new piglets for a few weeks now; this in view of falling prices. In addition, the mixed farms (fattening pigs and arable farming) are busy with their agricultural work these days and are therefore putting the laying of new piglets in second place for the time being.

Recommended fixed costs increase
In the Netherlands, the fixed connections are still running reasonably well. However, the demand for free piglets is very tepid, except in the case of current flocks (borgs and gilts). In principle, there are buyers for this. However, given the export difficulties, the domestic market is also becoming increasingly crowded. In addition to Germany, Spain is also absent.

All in all, Dutch trade is opting for a significant reduction, as shown by the statements from DCA Markets. The DCA BPP therefore decreases by €2,50 to €35 per piglet. As last March it was already announced, it is target amount (for fixed costs due to, among other things, increased freight and wage costs) increased by €1 to €2018 per piglet as of July 0,10, 2,10.

Pig price Vion
Vion's pig price does not seem to be moving. The slaughterhouse has left the quotation unchanged for the sixth week in a row (€1,45 per kilo), but says that this is not the case. Meat prices (shoulders and waist) are declining again this week, while the slaughterhouse is starting to notice the first effects of the holiday period.

DCA BestPigletPrice (week 27) Price range Number of problems  Average
€35,00 (-€2,50) € 34,00 - € 37,00 19 €35,447
Explanation DCA Markets: 
The circumstances for selling the piglets on the open market are not easy. Potential buyers seem to be in no hurry and, when the piglets are (in their eyes) too expensive, just as easily choose to postpone the sale. Last week the piglets were moving away reasonably well, but this week there are increasing signals that piglets are hanging over the market. Sales in Germany and Spain in particular are declining. The drop in the German piglet price is even remarkable (by German standards). A change of minus €27 has been issued for week 2, which brings the minus to €6 in 3 weeks. The statements from Dutch traders also show that sales are becoming difficult. The changes and distribution of the assignments make it clear that only one move can be made and that is a downward move.

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