Will pig feed get even more expensive?

Figures from Wageningen Economic Research show that the price of pork chunks has increased by €0,65 in the past month to €25,60 per 100 kilos. The listing thus responds to rising raw material prices.

Higher barley and wheat prices
The composition of pork chunks consists largely of wheat and barley. These same raw materials have increased significantly in value in recent months, due to poor growing conditions in various production regions. During the summer, the feed wheat price (EU-Rotterdam) rose by tens of euros to above €220 per tonne. In the meantime (week 40) the price has fallen again to €211 per tonne.

Historically (between 2013 and 2018), the difference between the pork chunk price and the feed wheat price is approximately €66 per tonne. There is currently a difference of €44 per tonne. Seen the wheat price made a solid bottom know, the price of pork chunks is set to rise (see graph below). Also the compound feed price indicator foresees this movement.

Other pig feeds, such as sow feed and piglet pellets, also increased in value last month. Price increases are also likely in the coming months.

By-products: more stable period?
Not only bulk prices, but also (wet) by-products are becoming more expensive. Tight supply is the driving force behind a series of price increases for wheat starches, wheat yeast concentrates and residual flows from the potato, bread and pastry industries.

Meanwhile, suppliers have reduced the price of wheat starches (Bondatar, Corami, San van Gent) by €0,10 per percent dry matter. This reduction can be seen as a correction to previous price increases. The advantage of by-products, compared to current raw material prices, had also declined considerably.

The availability of TGC Protiwanze is improving after the factory in Wanze, Belgium, was shut down for planned maintenance. The suppliers assume that the product will become more available, so that the chance of further price increases will fade into the background.

The price of wheat residual flows is expected to enter a stable period, partly as a result of less tight supply. This also applies to dairy residual flows, where supply and demand are largely in balance.

Potato residual flows
Pre-fried potato product is (permanently) scarce, as a result of the disappointing potato harvest. Various chip buyers have adjusted their quality requirements, which means that less product is available for the animal feed industry. The steam peeling market is better balanced.