Supply of piglets is growing, but demand is not growing with it

It became clear last week that the term 'price-based' no longer applies to the pricing of piglets. This has a number of causes. First of all, the supply of pigs is limited, which means fewer places are available for piglets.

The piglets delivered in the spring were relatively lightweight, which means it takes longer before the pigs are ready for slaughter. All in all, more effort must be made to get the piglets placed now. This has an impact on the mood and prices in the piglet trade. The masters also offer more resistance.

Spain is back
Secondly, Spain is making a strong comeback, in both activity and price. That is an annually recurring seasonal pattern. If there is trade in Spain, it is for considerably less money. Spain was the driving force behind voting and price formation at the beginning of 2019. Now that demand has disappeared, this has consequences for the pricing, which must do without the 'Spain effect'.

The biggest point of concern is the supply of piglets above the fixed couplings. These are currently difficult to sell or at significantly reduced prices. As a result, the piglet market must find its balance, which is accompanied by lower declarations from traders for the BPP. The increasing pressure on pig prices due to a tough meat market plays a role in this. Vion recorded a decrease of €0,04 today (Monday) to €1,82, which negatively affected sentiment.

Recording in Germany
Despite the gloomy stories, there are also traders who argue for a minimal adjustment of the price and have their arguments for this. Many of these can be traced back to the relatively good intake of piglets in Germany, although they also experience more difficulty in getting the piglets placed there. The more difficult sales of piglets in the Netherlands and Spain are acknowledged.

For this week, the BPP amounts to €52,00, which represents a reduction of €2,50 compared to last week's quotation.

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