The pig market is in full bloom

Spring has officially started this week and the pig market is already in full bloom, with the Chinese blossom taking center stage. The German pig price (the VEZG quotation) increased this week by €0,07 to €1,50 per kilo, while the Internet exchange has already risen to €1,63 per kilo. The suggests that the price is still far from over.

Tight supply, extremely good demand
Slaughterhouses are (very) eager to get pigs on hooks, this is the case in Germany, Spain and the Netherlands. The supply is getting tighter by the day. This is probably also because pig farmers are holding onto pigs and hinting at higher prices. In addition to the call prices, the surcharges also increase.

Rising pork prices pose a dilemma for slaughterhouses. Although daily prices for European meat parts (such as hams, bellies and forequarters) are also increasing, the pace at which pork prices are rising is (almost) impossible to keep up with. In addition, parts were also sold through fixed price agreements for the second quarter. This does not take into account significantly more expensive pigs. 

Take advantage of momentum
At the same time, sales are to China has gained momentum, meaning that the slaughterhouses need quantities to be able to deliver the parts. Sales to Japan are continuing steadily, while other overseas destinations are also on the market. All in all, the demand for meat is very good. Due to the large price developments, the market does feel a bit nervous.  

Nevertheless, the momentum in the market is currently so good that in these weeks the foundation can be laid for high and perhaps even very high pig prices next summer. The Dutch pig trade is therefore once again calling for a significant increase. The DCA Exchange Price 2.0 therefore increases by €0,07 to €1,44 per kilo for the slaughtered pigs. The price of live pigs increases by €0,06 to €1,16 per kilo.

View the latest listing here.