Inside Pigs
Supply pressure and corona sign pig market
The pig market is confronted with a persistently ample supply, tensions about the emerging second corona wave and lackluster sales opportunities for pork in Europe.
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Anyone who has their sights set on a higher pork price will have to be patient for the time being. The supply is wide both in the Netherlands (despite the Saturday slaughter) and Germany. Our eastern neighbors are even critical. Advocacy group ISN speaks eloquently of 'stau'. It is therefore not surprising that the VEZG quotation is stuck at a low level of €1,27 per kilo.
Worried about corona
Meanwhile, concerns about rising corona infections are increasing. At the Weidemark slaughterhouse in Sögel (Lower Saxony), which is a subsidiary of Tönnies, 36 employees have tested positive. The slaughter activities may continue for the time being, but it is worrying. In Sögel, around 75.000 pigs are slaughtered every week, which are serious numbers.
It is becoming increasingly clear on the European meat market that German slaughterhouses cannot enter China. Although the demand for many parts is not disappointing, this does put some pressure on pricing. Fortunately, Dutch slaughterhouses can (again) go to China, which eases the situation here.
Reluctant and insecure
The market situation can best be summarized in restraint and uncertainty. There is therefore little or no opting for a higher pig price. The DCA Exchange Price 2.0 for slaughtered pigs remains at €1,34 per kilo and the price of live pigs at €1,04.