Inside Pigs
Tönnies is considering a significant correction of sow price
The sales of sow meat is so bad that Tönnies cannot announce a sow quotation for week 17. This is already the second remarkable decision this week, given that the German slaughter giant also uses a Hauspreise for fattening pigs. Pig trader Willy Tijs strongly doubts Tönnies' motivation.
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An explanation on the website indicates that the demand for sow meat after Easter is very low. That is why Tönnies says he is forced to significantly reduce the sow quotation, but apparently the question of how much to reduce still needs to be considered. In the past week, Tönnies' sow price was already reduced by 3 cents to €1,40 per kilo.
'Nonsense story'
Pig trader Willy Tijs from Haarle, Overijssel, who usually trades a lot of slaughter sows, dismisses the German market leader's statement as a 'nonsense story'. "There is a conscious effort to reduce the quotation, but in the meantime they call us almost every day for sows for slaughter."
Due to the still relatively high piglet price, the supply of slaughter sows has been tight for some time, according to Tijs, and this will become even tighter towards the summer. Tijs has reduced his own sow quotation for week 17 by 3 cents to €1,76 per kilo (carcass weight). This follows the VEZG sow price, which fell yesterday by the same magnitude.
Sole ruler
If Tönnies decides to significantly reduce the sow price, it will have a big impact, according to Tijs. "They are the sole rulers of the sow market and therefore leading in pricing." He expects that Tönnies will still announce a sow price for week 17. "The offer will have to be settled, right?"