Analysis DCA Pig Index
DCA Pig Index is rapidly losing ground
The DCA Fattening Pigs Index has shown a further decline in recent weeks. The DCA Piglets Index is also losing ground quickly. The cause must be sought in the corona crisis, as a result of which meat sales are stagnating and the confidence to impose piglets has been dented.
The DCA Piglets Index has gone into free fall. Only in recent weeks did the index drop by more than 60 points (-32,4%) to 120 points in week 19. This means that the number of points is still above the long-term average of 100 points. The yield of fattening pig farmers is also declining. DCA Fattening Pigs Index has fallen to 114 points (week 19).
The rapidly falling piglet and pig prices are putting pressure on the returns of sow farmers. In addition, feed prices are also rising and it is expected that that trend continues† The fall in manure disposal costs has come to an end for several weeks now that the arable crops are in the ground.
Stagnant sales
The falling indices are due to the corona crisis. The drop in demand due to the lockdown in many countries has been a stumbling block for meat sales for some time, and the closure of slaughterhouses in Germany has recently been added. This increases the supply of pigs.
Nevertheless, the German pig price reached a bottom this week at €1,60 per kilo. This is a windfall from the perspective of the market situation. The course of the indices in the coming years will depend strongly on what the quotations and piglet prices will do. And that is difficult to say given the uncertainty.
Chanti Oussoren
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