European pig market remains gloomy

Last week, the VEZG opted for an unchanged quotation, but the large German slaughterhouses announced a day later that they would not follow this and would use house prices when purchasing free pigs. The mood this week is still nothing to write home about. These are difficult times for both pig farmers and slaughterhouses.

China's absence frustrates meat trade
The biggest bummer are still the volumes that were previously sold to China. Buyers have a choice of suppliers, now that large exporters from Spain in particular offer a lot of meat. Spanish integrations bought a lot of piglets this spring, especially in the Netherlands. These animals are now ready for slaughter and are again offered on the European market. Although Chinese pig prices recovered last week, it remains to be seen whether the supply will tighten to such an extent that Chinese importers will contact European suppliers again.

Until recently, good weather and the lifting of corona measures were mentioned as market supporting factors. In practice, however, these proved to be insufficiently strong to actually influence the market. In addition, the weak holiday period for the meat trade is approaching. Processors temporarily close their doors, which is not good for demand.

Offer of pigs not too large
The only positive factor is the not too large supply of finishing pigs. Germany has slaughtered significantly less this year than in previous years. Still, the supply is more than sufficient for the limited demand. The VEZG quotation will again be €1,48 this week. It remains to be seen whether the slaughterhouses agree with this price.