Inside Pigs
Tönnies ignores increase and uses hauspreise
There is a hauspreise on the plates in Germany. The increase in the German pig price is not followed by the market leader Tönnies. Why not?
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The German pork price (VEZG) increased by €0,03 to €1,85 per kilo on Wednesday afternoon, which is the first increase of 2020. However, the largest German slaughterhouse Tönnies does not follow this movement, but leaves the quotation unchanged at €1,82 per kilo. Vion Germany also applies a hauspreise at the same basic level as Tönnies.
Such a stalemate was already coming. The limited pig supply in Germany may justify an increase, but on the other hand, meat sales are quite slow at the beginning of 2020. Vion also emphasized this last Monday.
ASF and Coronavirus
In addition to sluggish sales, there is also tension on the meat market due to the outbreaks of African swine fever. An infected wild boar was detected last week in western Poland, just 12 kilometers from Germany. If the virus crosses the border, it will most likely mean that markets outside the EU will close their borders to German pork. And that means a significant loss of value. Exports to China are being hampered by the Corona virus that is currently emerging.