Sow price rebounds in a smoother market

The sow price of Tönnies, which determines the market pace in Northwest Europe, increases this week by €0,06 to €0,68 per kilo. Vion is increasing this week in the same order of magnitude to €0,98 (including VAT), after adding a penny last week. Tijs Haarle's payout prices are also picking up again after a long period.

Pig prices are not yet on the rise, the German VEZG quotation remained at €5 again yesterday (August 1,47). The Dutch slaughterhouse quotations also remained the same. 

Tönnies is scaling up
The higher sow price underlines the improved sentiment on the pig market. The oversupply is slowly drying up. According to traders, sales opportunities are improving day by day, but it should be kept in mind that the supply is still ample. This is partly because Tönnies is scaling up production, the intention is to slaughter around 17.000 pigs daily in Rheda-Wiedenbrück. 

Meat sales are also taking off, thanks to the warm summer weather. You only have to walk into the supermarket and you will notice that barbecue meat is in demand. This creates some 'pull' in the market. It cannot be ruled out that pig prices will pick up in the coming weeks, although at the same time no miracles should be expected. The Chinese meat ban has still not been lifted and meat supplies in Europe are reportedly still ample.

Heat protocol
Now that the mercury is exceeding 30 degrees, the pig sector will have to deal with the 'heat protocol' in the coming days, which does not make it any easier from a logistical point of view. What the impact of this will be remains to be seen. This may result in fewer pigs being slaughtered, which could delay further drying up of supply. At the same time, the higher temperatures cause growth retardation in fattening pigs.