Van Rooi: 'Price price correction necessary'

Slaughterhouse Van Rooi says that a correction of the pig price is necessary. This keeps the meat trade going and 2020 can be another good year for pigs.

In a press release, Van Rooi explains why they intend to correct the pig price. "In China, the price of pork has risen so sharply that consumers are giving up or switching to other types of meat. In recent months, this country has imported a lot (partly due to speculators), as a result of which the cold stores are becoming full. As a result, exports are stagnating. therefore overvalued," says Van Rooi. "A correction of €0,10 to approximately €1,80 per kilo is therefore necessary."

The abattoir also points out that Brazilian and Canadian exporters were recently admitted to China, in order to be able to supply the country with pork. The European competitive advantage over the United States is also disappearing, as the trade deal is in the making. The sounds that the tariff wall to be demolished in the near future were confirmed by the Chinese Ministry of Commerce in early December.

2020 can match 2019
Looking back on 2019, the Van Rooi slaughterhouse speaks of an 'extremely good pig year', as the income estimate from Wageningen Economic Research. At the same time, tensions and difficulties further down the chain are pointed out. European buyers of the slaughterhouse, for example, are having a difficult time financially. Due to the high meat prices, they have started or dropped out, partly because the credit insurance has been withdrawn. The high pig price therefore has a downside.

This does not alter the fact that Van Rooi has positive expectations for 2020. The slaughterhouse expects that the good pig prices of 2019 can be matched, provided a correction is made now to keep the meat trade going. The slaughterhouse emphasizes that it is short-sighted to knowingly keep the market going. There is a great risk of damage to this.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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