Inside Pigs
Higher pig price is not an ABC
After a stable period around Easter, the pig market is back on track. Higher pig prices are irresponsible according to Dutch slaughterhouses, but a tight supply in Germany is the other side of the coin.
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The German pig price (the VEZG quotation) increased by €19 in week 0,03 to €1,76 per kilo. The Internet Exchange pushed the limit again on Friday, May 10, by €0,02, increasing it to €1,86 per kilo. Based on these price results, you would expect that almost all traders in the Netherlands would opt for higher pig prices. However, a call through the market provides different insights.
To increase or not to increase?
Opinions in the market differ. There are arguments that substantiate a plus. The pig supply in Germany is tight and pork exports to China are booming. The practice seems more nuanced. Although pigs ready for slaughter are scarce in Germany, the supply in the Netherlands is not necessarily tight. This is also evident from the slaughter figures. Last week, 304.000 pigs were slaughtered, with an average weight of 98,90 kilos. The pigs are therefore delivered heavy.
In addition, slaughterhouses say that although China demands large volumes of pork, it is not possible to achieve high prices. Meat sales within Europe are disappointing; the BBQs will remain in the stable for a while, due to the cool temperatures for this time of year.
Emergency supplies in Great Britain
Sales in Great Britain are also difficult. The original Brexit exit date was scheduled for March 29, but that has been postponed to October 31. In the run-up to this, large meat stocks have been built up in the United Kingdom in order to deal with complications.
This applies not only to meat, but also to dairy products (such as butter and cheese). As a result, British stocks are currently large and this is noticeable in bacon sales. Ham sales are also difficult; slaughterhouses report that sales are under pressure. Based on the meat market, higher pig prices are not possible in the eyes of slaughterhouses. Certainly the slaughterhouses in Europe that do not have an export license for China are in a difficult situation.
DCA Stock Price 2.0 still up
Although a number of pig traders are calling for calm in the market and therefore advise against an increase, the DCA Exchange Price 2.0 is still rising based on the statements. The price of slaughtered pigs increases by €0,02 to €1,67 per kilo. The price of live pigs is up from €0,01 to €1,35 per kilo.