Inside Pigs
Lack of trust is driving piglet prices down
To speak in cycling terms: DCA BestPigletPrice is on a steep descent, the end of which is not yet in sight. The pressure on the German piglet price is also building up visibly.
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The mood at the piglet market has completely changed in 2 weeks. Due to a seasonally increasing supply, there had been price pressure for a long time, but because of the sudden pressure on the pig price the gate is now off the dam. A reduction of €4 has even been announced for the Nordwest listing in Germany this week. It should be noted that the German piglet price is currently still at a price record of €64 per piglet.
Hopeful expectations evaporate
How could the mood change so much in such a short time? The main reason is a lack of confidence among fattening pig farmers in Europe, now that the hopeful expectations regarding the pig price have gone up in smoke. For example, Vion is reducing the pig price again this week by €0,04 to €1,78 per kilo.
The slaughterhouse speaks of a very difficult process of valorizing the carcass. Hams, shoulders and bacon in particular are under price pressure. In addition, the slaughterhouse in China experiences a lot of competition from the United States.
According to traders, the uncertainty on the pig market makes it difficult to place piglets. Fattening pig farmers are currently waiting to stock up on free piglets, now that prices are losing euros at a time. Demand from export markets (particularly Spain) has virtually disappeared. Sales to Germany are also less smooth, although the German market is not full.
BPP drops by €50
The piglet market in the Netherlands is full. Another significant reduction for the DCA BestPigletPrice is therefore inevitable. Based on the statements, the quotation drops by €3 to €49 per piglet. With this reduction, the BPP has lost €8,50 in recent weeks.