Inside Pigs
Import of live pigs from Belgium temporarily stopped
The outbreak of African swine fever in Belgium is currently the talk of the day on the pig market. Do the slaughterhouses still want to hook up the usual supply from Belgium?
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De outbreak of African swine fever is causing a lot of controversy in the sector. Most of them have now recovered from their shock. Now the balance is being drawn up and several scenarios are doing the rounds.
Don't take any risks
Slaughterhouses in the Netherlands and Germany do not seem to want to take any risks and have stopped the supply from Belgium for the time being. This story is confirmed by a transporter, who does not want to comment further. A spokesperson for the Belgian food agency (FAVV) says that Belgium in any case no export ban applies. Only the pigs in the infected zone are not allowed to leave. However, this is a pig-poor area.
This would mean that slaughterhouses (Vion and Tönnies are mentioned) have stopped the supply from Belgium on their own initiative. It is estimated that Belgium exports 15.000 to 20.000 live pigs abroad every week. The number going to the Netherlands varies from week to week between 4.000 and 10.000 fattening pigs. In Belgium itself, there seems to be a rush to get the pigs placed at domestic slaughterhouses, which in itself is logical. The slaughter itself is continuing under normal circumstances for the time being.
Good question, but a correction
For the time being, the outbreak has had little effect on the demand for pigs. Traders say that the pigs can easily be placed. A lot of space became available on 14 September in particular, which is probably due to the halted supply from Belgium. This signal was also sent by the Internet Exchange, which rose by €0,01 to €1,46, with the lots selling off quickly. The increase does not correspond to the situation on the meat market, where there are (dark) red quotations for many components on the signs.
The quotes at DCA-Markets show a wide bandwidth, which indicates that traders are looking for the right price formation. The center of gravity indicates a reduction, because the DCA Exchange Price 2.0 is too tight compared to the Dutch slaughterhouses. The reduction of €0,03 to €1,33 per kilo should be seen as a correction. The price of live pigs is also correcting, but by €0,02 to €1,07 per kilo. It is difficult to say how pig prices will move in the near future. Much will depend on developments surrounding swine fever. Slaughterhouses say they are considering further reductions.