Pork chunk prices continue sharply in September

The price of baby piglet pellet is the only one to decrease by €0,25 compared to last month. This brings the chunk price to €35,45 per 100 kilos. Compared to the 5-year average of €35,24 this month, this is still relatively high. Last year the price was also €35,10 lower than this year. It now appears that the price drop will be less drastic from next month.

Double off
€0,20 will be deducted from the price for both the starter/transition pellet and the pork chunks. This means that the starter/transition pellet is €28,30 per 100 kilos and the fattening pig chunks go to €24,10 per 100 kilos. Since the decline started in May, both products have experienced a fairly similar trend in terms of price decline.

Both chunks are still above their 5-year average. In addition, they also remain above last year's price drop. With the prospect of an upcoming price increase, or at least a leveling off of the decline, this is not the best news for the pig farmer. As long as the slaughterhouses continue to operate, this is not the biggest problem. With the increasing number of corona infections, it is hoped that slaughterhouses will not be affected again and pig farmers will be forced to keep pigs in the stables longer. This leads to unforeseen feed costs, which are not desirable with high pellet prices.

Sow chunks
We have also noted a drop in price for sow feed. Both the sow feed lakto and the sow feed pregnancy both decrease by €0,15. This amounts to €29,30 and €25,00 per 100 kilos of chunks respectively.

Of all the pellet prices, it is the sow pellet pregnancy that remains well above its own 5-year average. At the current price of €25,00 per 100 kilos, the lump is just under a whole euro higher than the 5-year average in the same period. And with the prospect of the price decline leveling off, this gap is expected to widen in the coming months. This has to do, just like with the other chunks, with price fluctuations in raw material prices. These seem to follow each other more quickly with fewer differences, which means that the price remains high.

Expectation
It is expected that the price drop will gradually decrease from next month and will even gradually be converted into a price increase again. The Boerenbusiness Compound feed indicator shows that the price is now trading at the 10-year average. For next month the indicator records a minimal increase that is almost negligible, the price trend will then remain the same as this week. The price trend then exceeds the average, ultimately converting the decline into an increase.