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Inside Pigs

A little more air at overcrowded pig market

17 July 2020 - Wouter Baan

Now that slaughter is allowed again at the German market leader Tönnies, the sector can close an unpleasant chapter. However, the supply problems have not yet disappeared. What does this mean for the DCA Scholarship Prize 2.0?

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Tönnies started slaughtering pigs again yesterday (July 16). You could call it a false start. Animal activists boycott the slaughterhouse was quite violent and the authorities in Germany also temporarily halted the slaughter process for other reasons. The expectation is that the meat company will be able to slowly scale up again in the coming weeks. This benefits the extremely large pig supply in Northwestern Europe, although little of this is currently noticeable.

Major backlogs
Traders 'complain' that it is difficult to place fattening pigs and that there are major delivery delays. That is why meat pigs are sold to Spain, although not out of luxury. It is also significant that the lots offered on the Internet Exchange are not traded on a weekly basis. Yet the prevailing feeling is that the worst is behind us. However, the market will probably need a few weeks to reset.

There are varying opinions about the situation on the meat market. While one slaughterhouse talks about improved sales opportunities for hams and bacon, the other talks about continued price pressure. In any case, there is no white smoke yet for the slaughterhouses that have been confronted with an export ban to China for several weeks and this is reportedly going to take some time.

Stable DCA Scholarship Price
A higher pig price is not realistic for the time being, nor are reductions. This means that the DCA Exchange Price 2.0 remains at €1,33 per kilo for the slaughtered pigs. The price for live pigs remains unchanged at €1,05 per kilo. Unlike previous weeks, the listing is now not provisional, but final.

View the latest listing here.

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