Inside Pigs
Pig price is still standing still for a while
The stable course in the pig market is not yet changing. Positive developments can be detected in the background, but that could lead to an increase. The supply of fattening pigs is too wide for that.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
If we look at the market from the 'glass is half full' perspective, it is positive that after Westfort, Van Rooi Meat has also received China recognition again. The German Tönnies was previously given the green light. Vion is still waiting for this, although it is expected that they will also be able to export to China again soon. If that is the case, the pig sector in Northwestern Europe could close an unpleasant chapter.
Offer remains ample
However, this does not yet mean that all signals are green for a higher pork price. The pig supply has still not dried up after the plug that occurred in July. Many traders have difficulty placing pigs. Due to the corona measures, sex is limited. This is also evident from the slaughter figures in the Netherlands, which have remained well below the 300.000 limit for weeks. The average weight of 99 kilos also indicates heavy pigs. In Germany, the slaughter figure moves around 850.000 from week to week.
Meat sales within Europe are stable, but quiet. The escalating coronavirus is more likely to lead to a tightening rather than a relaxation of the measures, which casts a shadow on sales opportunities. China has a market outside Europe, but American and Brazilian competition is fierce.
Equal pork price
A stable pig price is the highest achievable for the time being, although a price increase is certainly not impossible in the coming weeks. The Internet exchange in Germany is 'tight' at €1,50 per kilo compared to the VEZG quotation, which stands at €1,47. For the time being, the DCA Exchange Price 2.0 for slaughtered pigs remains at €1,34 per kilo. The price for live pigs remains the same at €1,05.