Inside Pigs
Abattoirs serve the soup hot
The contrast with last year at this time is great: then pig prices in Europe skyrocketed like a Chinese rocket. Now, 12 months later, the quotations are falling like a brick. And the bottom is not yet in sight.
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The loss of meat sales is becoming more apparent by the week. Only politicians could offer a solution by relaxing the lockdowns, but that does not seem to be the case in the short term. In many European countries, the catering industry will remain closed for the time being. This is to the dismay of many entrepreneurs who can hardly muster the patience anymore.
Pig farmers also view the situation with dismay. The German VEZG listing had to lose another 5 cents this week to €1,70 per kilo. But the question is whether the bottom has now been reached? Vion Germany appears to be applying a Hauspreis at €1,67 per kilo from next week.
Oppressive offer
In addition to the sluggish meat sales, the supply of pigs is depressed. There was another slaughter day in Germany today due to the celebration of Labor Day, the second day in a short time. Therefore, not all pigs offered can be placed. There are also many pigs ready for slaughter in the Netherlands. Besides the fact that this is an aftermath of King's Day, many pig farmers are in a hurry to deliver. In view of the unrest in the market (due to rapidly falling prices), this is not illogical.
In the Netherlands there are rumors that slaughterhouses want to reduce prices significantly, possibly even up to 20 cents. Whether the soup is also eaten that hot remains to be seen. In any case, the mood is nothing to write home about. Many traders at DCA-Markets are once again opting for a significant reduction. The quotation for slaughtered pigs drops by 12 cents to €1,50. The price of live pigs drops 10 cents to 1,19.