Inside Pigs
Growth slowdown provides a windfall
The German pig price (the VEZG quotation) unexpectedly increased by €0,02 this week to €1,41 per kilo. This negates last week's decline. Why this correction?
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The mood on the pig market in Northwestern Europe has not been rosy in recent weeks. The slaughterhouses complained a lot about poor meat sales and the situation has not yet improved. Yet the German producer price went up and this movement was followed by large slaughterhouses such as Tönnies and Westfleisch. This while in the weeks before they had threatened with a 'boompreise'.
The increase is the result of an extremely tight supply. The supply in Germany has not been extensive all year, but most weeks offered this hardly any support. Due to the high temperatures, growth has slowed down in many places, which means that supply can make a difference this week. And that is quite striking, given the holiday season. The slaughter figure fell last week by almost 20.000 slaughters to 936.123 pigs, while the average slaughter weight also fell.
Nothing more than a stroke of luck
In the Netherlands, few people took this correction into account. Several traders were under the assumption that quotations in Germany would return to €1,35 per kilo. However, the increase should not be seen as a prelude to more, although that is desired by many. The slowdown in growth only has a temporary effect on supply; meat sales are on the global market difficult. However, the high ones remain temperatures hold for the time being.
Compaxo lowered the quotation by €0,02 to €1,23 per kilo (excluding VAT). Van Rooi kept the quotation the same (€1,33 per kilo). In the surrounding countries the picture is mainly stable; with the exception of the quotation in Poland, which dropped €0,02 to €1,39 per kilo. However, in the weeks before, the Polish quotation remained largely stable.
Stable sow prices
Sow prices are also unchanged. It is possible that there will be more supply pressure from the 'sausage cows' in the coming months. The drought is endangering dairy farmers' roughage production. If the grass and corn harvest is disappointing this autumn, it cannot be ruled out that dairy farmers will cut their livestock. In Germany the first signs of this are visible. For now, however, it is nothing more than a scenario to keep in mind.