Large supply, great concerns, stable pig prices

Everything that can be bad for a market is currently happening to the (European) pig market. It is fortunate for the Netherlands that there is no African swine fever, which means that there are still sales opportunities that a country like Germany cannot currently reach with the meat. Yet this did not and does not offer the Netherlands any room for more positive pricing.

'Schwierig'
The fear that this week the German pig price was adjusted downwards, later turned out to be unfounded. The German pig market Although it runs very hard, it tries to do everything it can to keep the prize alive. The German situation is illustrated by the Internet Exchange, which has not been able to put together a price since Tuesday, September 1, due to a lack of trading.

Negotiations between German and Chinese authorities to divide Germany into regions in order to export meat to China have not yet yielded any results. In week 42, the slaughter volume increased by 1,3% to 822.685 heads, which can be seen as a positive signal. Dutch pig traders who, under normal circumstances, sell a very large proportion of their pigs in Germany are complaining a lot. They have been driven into a corner where any alternative seems further away than ever.

Limited sales are available at Dutch slaughterhouses, whether or not through fellow traders. In order not to be overwhelmed by the pig supply, Dutch slaughterhouses have previously indicated that they will no longer accept new UBN (Unique Company Number) numbers until further notice. This thins the pool for traders who normally rely heavily on the German market. Exports to other European countries offer very limited scope, not to mention the price level.

Consequences of corona
Due to the flaring coronavirus in the Netherlands, slaughterhouses are erring on the side of caution. They have not yet forgotten the lessons of last spring/summer. Under the current circumstances, the Dutch pig market is certainly not looking forward to closures of slaughter locations. In practice, the slaughter capacity is necessarily further restricted, so that it can be made clear during inspection that they are doing everything they can not to be regarded as a source of contamination. Traders who normally find their sales at Dutch slaughterhouses may therefore be limited in the planning that slaughterhouses grant.

The lower rather than constant slaughter programs lead to less meat production, while the sales of meat could not really be called dramatic, although there are rumors that new negotiations with China are going more slowly. Under normal circumstances, this would give rise to an attempt to achieve a positive movement in pig prices. But this week it also becomes clear that traders do not think the time is yet ripe for this. Peace is the only thing the market needs right now.

DCA Scholarship Price 2.0
This means that the DCA Exchange Price 2.0 this week for slaughtered pigs remains at €1,34 and for live pigs at €1,04. It must be hoped that new measures in the battle to curb the coronavirus will not spoil the situation in the coming weeks. This week it was positive to report that all social initiatives around the meat consumption to shrink for the second year in a row seem to have the opposite effect.

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