More insight into higher pig prices

Since the turn of the year, the pig supply in the Netherlands has been (very) ample and pigs have to be transferred every week. The fact that Dutch pig prices rose at the beginning of February was a result of the recovery on the German pig market. 

Pork supply is shrinking somewhat 
Spring is now approaching, and the pig supply is slowly becoming less extensive. However, interpretations about the pig supply differ depending on the region. There are still relatively many pigs in the south of the Netherlands, but this does not alter the fact that the slaughter figure is declining. In the past week, 306.000 pigs were slaughtered, which is the lowest number in a full slaughter week so far this year. 

In addition, the average slaughter weight (98,90 kilos in week 9) has clearly shown a decrease for 2 weeks in a row. Based on the recent count of the pig herd it is also likely that the supply will shrink further in the coming weeks. 

Plenty of space for placement at German slaughterhouses 
In Germany, the pig supply was already proportionately tighter. The offer that becomes available every week has been easy to place for weeks. In the past week, 957.688 pigs were slaughtered, which is in line with the same week in 2018. However, so far this year, 8,5 million pigs have been slaughtered, which is 2,8% less than the same period a year ago. 

Dutch traders who supply German slaughterhouses confirm that the pigs run away easily. The Internet Exchange also demonstrated this on Friday, March 8: the listing wiped away the previous reduction by increasing by €0,01 to €1,47 per kilo.

Turnaround on the meat market 
The air is also clearing up a bit at the meat market. For example, Danish Crown says that purchasing parties in Europe inquire more often and that sentiment is changing. The frozen stocks that have been built up are slowly decreasing. According to the Danish meat company, the prices of various carcass parts are also cautiously increasing.

The front piece and the attorneys in particular are in demand on the European market. Outside the European Union (EU), there has not yet been a visible improvement in demand, although there is more optimism regarding sales to China. 

DCA Stock Exchange Price 2.0 still stable 
However, the DCA Exchange Price 2.0 does not yet anticipate the improving conditions, but the prospect of higher pig prices is increasing. Whether this will be reflected in the coming weeks remains to be seen. For now, the DCA Exchange Price 2.0 for slaughtered pigs remains at €1,32 per kilo. The quotation for live pigs is flat at €1,06 per kilo.

View the latest listing here.