Inside Pigs
Slightly fainter mood on pig market
Many pigs have been slaughtered for a long time in order to meet the burning Chinese meat demand. At the same time, the supply is more than sufficient and that stands in the way of a higher pig price.
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The fourth quarter is just around the corner. Historically (in 2016 and 2017 when China was also on the market), the German pork price trended downwards at this time of year. For the time being, however, a reduction is not in the cards, because this week the VEZG quotation has also maintained itself quite easily at €1,85 per kilo. However, the prospect of an increase is increasingly diminishing.
Slightly lighter mood
Compared to the past few weeks, the mood has not improved any further, but rather has become somewhat duller. This is partly because China is reportedly resuming increased import duties on American pork will delete. And that has a negative impact on European meat exporters.
This does not alter the fact that China will most likely continue to import large volumes of meat from Europe in the coming months. The Chinese pig herd has fallen even further in recent months and may even be on the way to halving before 2020. The meat shortage in China is reaching such a tight level that the government this week released 10.000 tons of pork from central reserves in an attempt to stabilize rising pork prices. This underlines the meat shortage in China.
Stock market price remains the same
Dutch slaughterhouses must also make every effort to meet Chinese demand. That is why slaughter takes place on Saturdays in more and more places. Nevertheless, the supply of pigs ready for slaughter remains ample. Supply is also in line with demand in Germany and surrounding countries. The DCA Exchange Price therefore remains the same at €1,76 per kilo for the slaughtered pigs. The price of live pigs remains at €1,42 per kilo.