Inside pigs
Are exports of Dutch piglets to Spain still growing?
Spain is becoming an increasingly important export destination for piglets for Dutch pig farmers. In the first quarter of 2021 (up to and including March 28) there appears to be a sharp increase again compared to a year earlier. In recent weeks, however, numbers and prices have been under pressure. An analysis based on conversations with trade and export figures from the Netherlands Enterprise Agency.
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In 5 years, the number of piglets exported to Spain has increased significantly. The total number of Dutch piglets that crossed the Spanish border in 2020 was no less than 573% higher than in 2016. Spain has traditionally been interested in Dutch piglets for a short period in the spring. Although this peak still exists, structural demand is now also visible in the rest of the year. In 2016, 191.900 piglets were sold to Spanish companies. This has now risen to 1.292.920 piglets in 2020. This means that Spain had a share of 18,4% in the total Dutch piglet exports of 2020. The total Dutch piglet exports amounted to 7.004.710 piglets.
Spanish advance continues
More piglets were sold to Spain again in the first quarter of this year. This involved a total of 421.464 piglets, almost 168.000 piglets more than in the first 10 weeks of 2020. The total share of Spain in Dutch piglet exports has therefore increased to 26,9% over this period this year.
Recent relapse
From week 10 onwards, exports to Spain dropped considerably compared to the peak in January and February, although export figures are still above last year's levels. Rumors in the trade confirm that there is currently less demand from Spain, because the spring imposition is behind us. Spanish pig farmers wanted to start production quickly in the spring in order to be able to supply sufficient meat during the summer season when the tourist season reaches its peak. Now that this peak is behind us, the madness surrounding the prices for free piglets has also calmed down somewhat. Prices for these couples have been reduced by more than €2 in the space of 10 weeks to around €70 now.
Furthermore, it can be noted in the trade that the structural part of the increasing piglet exports has to do with the Chinese demand for Spanish pork. Spanish companies have been benefiting from this for several years and are trying to fill the brackets as best as possible. Many older stables that were no longer in use are being filled again. Mainly with Dutch piglets. It remains to be seen how this export flow will hold up if China's import needs shrink again in the future. It is therefore uncertain whether this export destination will remain sustainable to this extent, let alone continue to grow.
Fewer piglets to Germany
Piglet exports to German buyers are actually declining. While 2016 piglets were exported to Germany in 4.499.544, this number has fallen to 2020 in 4.282.423. Fewer Dutch piglets were purchased, particularly in the fourth quarter.
A likely explanation for the recent decline in exports to Germany is the outbreak of African swine fever in September 2020. Due to a lack of market prospects due to export restrictions, there was less demand from German pig farmers for piglets. The recent revival and stabilization of pork prices has somewhat reduced confidence among German pig farmers. The trade has noticed this in a small revival of interest in buying animals.