Inside Pigs
Pig price cast in rock hard concrete
The situation on the pig market is almost a copy of the previous weeks. China is on the market and meat prices are rising. On the other hand, the offer is more than sufficient.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Pork sales are booming and various parts of the carcass are positive. It should come as no surprise that China is in need of pork. The reassuring thought for pig farmers is that this demand will probably only increase. The United States Department of Agriculture (USDA) expects that the Chinese production decreases by 2020% in 25 to 34,8 million tons.
In short: the floor under the pig price is made of rock-hard concrete. However, so is the ceiling (for now). The German pork price remained stuck at €1,85 per kilo this week for the tenth week in a row. The supply of pigs is too large to trigger an increase. In Germany, Reformation Day is celebrated on Thursday, October 31, and All Saints' Day on Friday, November 1. Then the activities are at a somewhat lower level. This means that the supply of pigs ready for slaughter is temporarily even wider.
Ample supply blocks price increases
In the Netherlands the supply is also large, but not problematic. In a market where slaughterhouses so willingly accept pigs, that would not make sense. The fact that slaughterhouses are slowing down is also evident from slaughter figures. Last week, no fewer than 323.000 pigs were on the hooks, with an average slaughter weight of 98,7 kilos. This is the highest number so far in 2019.
As long as the hooks heal easily, a higher pork price is not likely. The DCA Exchange Price 2.0 therefore remains the same at €1,76 per kilo for the slaughtered pigs. The price of live pigs remains at €1,42 per kilo.