Inside Pigs
Are piglets already becoming scarcer due to the stopper regulation?
The pig farming restructuring scheme was a hot topic in the sector last year. Proportionally, more sow farmers stop than finisher pig farmers. This has an effect on sow inseminations and the piglet supply. Can the piglet price benefit from the stopper scheme?
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In total, more than 500 pig farmers registered for the stopper scheme and just over 400 companies received a decision. It later turned out that not all pig farmers who were eligible actually decided to stop. 'Only' half of the 400 companies are definitively participating in the restructuring scheme. This still means a decrease of around 200 pig farms in the Netherlands.
Fewer sow inseminations
According to Kor Mast, commercial director of Preferent Ki, the decrease is clearly reflected in the number of sow inseminations. Proportionally, many more sow farmers than fattening pig farmers have stopped farming. According to the figures available to Mast, the number of inseminations is approximately 10% lower. "Last year, according to our information, about 90.000 fewer sows were inseminated than before."
Despite the stopper scheme, Class Ki became one in 2020 sales growth achieved. In total, 20% more semen was sold than in 2019. It should be noted that the pig genetics producer also exports many doses worldwide and that exports are an important factor in the company's sales.
Decrease in Germany
Not only is there a decrease in the number of sow farmers in the Netherlands, the same development is also happening in Germany. A lot of people threw there last year sow farmers have thrown in the towel. On November 3, there were still 6.800 sow farmers, a decrease of 5,6% compared to the previous year. The breeding sow herd fell by 5,4% last year, while the entire pig herd remained largely stable.
Price increase
Seasonally, the piglet supply is usually lower at this time of year, but this year the decrease in the sow herd makes the piglet supply more limited. This will inevitably also play a role in piglet prices, which have already risen considerably at the beginning of this year.
The extent to which the price increase can continue is highly dependent on fattening pig prices. These are still not good because of the wide supply of fattening pigs and limited sales due to the lockdowns.
Mast expects that the demand for piglets will eventually exceed supply. "I think that piglet prices certainly have room to rise further, but to what extent depends on market conditions. What prices will do depends largely on when sales become more efficient and Germany is allowed to export pork to China again."