Surprisingly high demand for meat pigs

It is a week of extremes. The discovery of the coronavirus at Vion in Groenlo is a major dampener that is causing a lot of tension in the sector, but on the other hand, the German pork price (VEZG) rose by 6 cents this week to €1,66 per kilo. The large slaughterhouses, such as Tönnies, followed this increase without complaint.

The Internet Exchange exceeded this again on Friday and rose by 7 cents to €1,75, with all 8 offered lots being traded.

More demand for meat
The changes can be seen as a strong signal that the demand for pork in Europe is increasing again. Now that the corona measures are being relaxed in many European countries, this is a logical development. In addition, temperatures in Northwest Europe will rise to levels next week, whereby the BBQ will be ignited more often. The rising prices may also stimulate more Asian buying interest. 

Slaughter sow has to pay for it
If one of the larger Dutch slaughter locations were to close, you would expect an oversupply of pigs. Especially because a processing day was also canceled this week, due to Ascension Day. But nothing is less true. The demand for fattening pigs is surprisingly good. The lost capacity is mainly passed on to slaughter sows. As a result, there is so little demand that Tönnies has decided not to announce a sow price.

Increase in DCA Exchange Price 
As long as no second corona infection is detected in a slaughterhouse in Northwestern Europe, the good demand for fattening pigs can continue. That's the idea. The Dutch pig trade is therefore calling for a significant increase in the DCA Exchange Price 2.0 at DCA Markets. The quotation for slaughtered pigs increases by 8 cents to €1,51 per kilo. The price for live pigs increases by 7 cents to €1,21 per kilo.

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