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Inside Pigs

Heavy pigs are given priority at Tönnies

25 November 2020 - Wouter Baan

To cope with the oversupply of finishing pigs, Tönnies intends to slaughter the heavy pigs first. In the background, German politicians are also working on a solution to the problem situation.

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In a conversation with the chairman of the Westfälisch-Lippische farmers' association, Clemens Tönnies, owner of the slaughter company of the same name, indicated that he is committed to 'eliminating' the oversupply of pigs. Due to the corona measures that slaughterhouses have to take, much less can be slaughtered. Since the summer, the oversupply has risen to more than 500.000 pigs and this number is still rising. The pigs are therefore slaughtered more and more heavily.

Targeted approach
Tönnies advocates a targeted approach and wants to give the heavier pigs from regular suppliers priority on the slaughter line in the coming weeks. The meat company wants to be lenient with the weight discount by expanding margins. It is not yet known how many kilos this concerns. If desired, suppliers also have the money in their account the day after delivery. Tönnies wants to help pig farmers who have liquidity problems.

Pig prices in Germany, but also in surrounding countries, have fallen sharply recently due to oversupply. The VEZG quotation is only €1,19 per kilo, which is far below the cost price. At the beginning of this year the quotation was still above €2. According to Tönnies, the decline in recent weeks is mainly a result of the outbreak of African swine fever in Germany, which caused Asian countries to ban German pork.

Political support
Next Friday, German Agriculture Minister Julia Klöckner, at the request of the sector, will talk to agricultural ministers from various states about the problem situation. Discussions will include reopening the Chinese sales market. Possible European measures, such as private storage of pork, are also discussed. Liquidity problems among pig farmers are also on the agenda. Advocacy group ISN has indicated that pig farmers are entitled to emergency support, just as the catering industry receives.

The Dutch government has indicated that all entrepreneurs who have demonstrably suffered damage due to the corona crisis are entitled to compensation. The application for this at RVO starts today (Wednesday, November 25).

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