Inside Pigs
ASF fear makes slaughterhouses thoughtful
The pig price is under pressure. The supply is large, meat sales are difficult and the fear of an outbreak of African swine fever hangs over the (German) market. The DCA Stock Price 2.0 is red again.
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It is an annual ritual: after meat sales reach a peak in December, demand drops sharply in January. This year is no different. Normally, slaughterhouses use this period to build up stocks. This year, German slaughterhouses in particular are reluctant to do so.
Fear of AVP
This has to do with African swine fever. In western Poland, just 20 kilometers from the border with Germany, the animal disease was recently diagnosed in a wild boar. It seems to be a matter of time until the virus crosses the German border. In that case, German slaughterhouses will have a major problem, because the export destination outside Europe will probably largely disappear. This makes slaughterhouses reluctant to build up frozen stocks.
In addition, China is currently less active in the market. Moreover, according to hearsay, Chinese buyers are bidding back. All in all, meat sales are slow. The prices of almost all parts (hams, shoulders and bellies) are therefore under pressure.
Slaughterhouses are therefore confronted with declining margins. And because the pig supply is ample in both the Netherlands and Germany at the beginning of January, this puts pressure on the price. The German pork price (VEZG) fell this week by €0,09 to €1,86 per kilo. This move was followed by Tönnies and Vion Germany, while the Dutch slaughterhouses also significantly reduced their quotations.
Lower DCA Exchange Price 2.0
Price pressure will continue into next week. Based on the statements submitted to DCA-Markets, views differ greatly from trader to trader. The DCA Exchange Price 2.0 for slaughtered pigs decreases by €0,09 to €1,71 per kilo. The price of live pigs drops from €0,07 to €1,38 per kilo.