Inside Pigs
German piglet price is now also dropping
Following the Dutch piglet price, the German quotation has now also dropped. A development that could no longer be avoided, given the continuing pressure on pig prices. Also at Vion.
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The German piglet price (VEZG) had only been reduced twice this year, with the price dropping from €83 to €76 per piglet in mid-March. The listing then remained unchanged for several weeks, although surcharges were being adjusted in the background. This week the quotation has been reduced again, by €3 to €73 per piglet.
Unrest on the pig market
The reduction is a direct result of the unrest on the German pig market, where the large slaughterhouses are exerting price pressure through a boom price. Moreover, it is unlikely that Tönnies and Vion will make up the difference of 4 cents on Wednesday afternoon, according to various market parties. This development dampened purchasing interest and the reduction in the German piglet price could no longer be averted. The Danish quotation can hold for the time being, at the equivalent of €83,70 (approximately 30 kilos).
In the Netherlands, piglet sales are not running smoothly, but neither is it extremely slow. It's somewhere in between. Domestic demand is ordinary, just like sales to Germany. Spanish and Polish demand is weak. The trade has opted for a further reduction of the DCA BestPigletPrice, which will therefore decrease by €1,50 to €59,50.
Vion pays minus 3 cents
The pressure on pig prices also continues in the Netherlands. For example, Vion lowers the weekly quotation by 3 cents to €1,86 per kilo. Vion has also reportedly reduced the weekly allowance by 2 cents. The meat company speaks of a lack of demand from countries - normally tourist attractions - such as Italy, Spain and Greece. Cheap American competition is clearly noticeable on the global market.