Inside Pigs
Piglet trade deteriorated, DCA BestPigletPrice down
Although German piglet prices appear to easily maintain record levels, price reductions in the Netherlands are inevitable. How come?
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The situation on the piglet market is currently characterized by an increasing supply. Individual problem flocks (boars and gilts) have been more difficult to place for some time now, but marketing more common flocks is also becoming more difficult.
Spanish piglet prize
Piglet exports to Spain have been declining for a few weeks. This does not come as a surprise, because this export is seasonal. After peak demand in the spring, sales are declining again. The Spanish piglet price recorded the second reduction in a row last week, falling by €1 to €51 per piglet. Historically speaking, the decline will continue for a while.
Sales to Germany are much better, although the 'wild demand' of a few weeks ago is no longer an issue. The delivery backlogs among fattening pig farmers are now a thing of the past. The VEZG piglet price remains at €64 per piglet in a stable market. Moreover, the trend reports indicate no change.
Imbalance is growing
In the Netherlands, the imbalance between supply and demand is growing. The fattening pig farmers are reluctant, because pig prices are having difficulty making gains. This may change if (German) pig prices rise seriously this week, as expected by the market. Vion is not yet preparing for this and is keeping the price stable at €1,86 per kilo. The slaughterhouse is again talking about heavy price pressure, for the neck, the forepart and the sale of by-products to China.
Due to the heat, growth is retarded in the non-air-conditioned stables. This may benefit the pig market, but not the piglet market. Since the fattening pigs lie down longer, there is less space for piglets.
First reduction since October
A piglet surplus is not an issue, but traders believe that the DCA BestPigletPrice is too high in relation to the sales opportunities. Based on the statements, the quotation drops by €1 to €56,50 per piglet. This is the first reduction since October, when the price fell to a record low of €24 per piglet.