Inside Pigs
Pig price picks up unexpectedly
The demand for pigs that are ready for slaughter has accelerated. Slaughterhouses have to outdo each other to be assured of a sufficient supply. Meat prices are also picking up. Why this development?
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The revival on the market is somewhat surprising. After all, we are in the middle of the holiday season and that is normally a weak period for pig prices. However, this did not stop the German pig price (the VEZG quotation) from rising by €0,04 this week to €1,78 per kilo. This move was also followed without comment by the large German slaughterhouses.
This willingness is due to the persistently tight German pig supply. "If you don't raise money, you won't touch the pigs," is the thinking. The Internet Exchange even slightly exceeded this by increasing by €0,05 to €1,91 per kilo, with all lots being sold.
There is plenty of sex going on
Supply is also tight in the Netherlands, traders say. This is in a sense striking, given that pigs ready for slaughter have been postponed to this week due to the extreme heat. Last week, 279.000 pigs were slaughtered in the Netherlands. In the 4 weeks before that, an average of 290.000 pigs were on the hooks.
This means that more than 10.000 pigs have been postponed to this week. However, this offer has long been off the market. There is plenty of sex this week. The average slaughter weight also shows a significant decrease from 0,60 kilos to 95,80 kilos. This underlines the tight supply.
Various traders say that slaughterhouses are busy with pigs, both in the Netherlands and Germany. They have to outdo each other to be assured of full slaughter hooks. However, attempts are being made to dampen the mood somewhat, to prevent pig farmers from retaining supply.
Supply-driven increase
The demand for pigs ready for slaughter did not come out of the blue, but is fueled by rising meat prices. Many carcass parts pluses. Sales in the most important markets outside Europe (China and Japan) are going well, but are not necessarily better than in recent weeks. Despite the more positive meat market, it is mainly the tight pig supply that is driving the market.
Despite the increase in Germany, Dutch slaughterhouses kept their listing unchanged this week. The DCA Exchange Price 2.0 for slaughtered pigs sets the tone for next week by increasing by €0,06 to €1,69 per kilo. The quotation for live pigs increases by €0,05 to €1,36 per kilo.