Inside Pigs
No light at the end of the pig market tunnel yet
The pig market was already under pressure, but is now under the spell of the African swine fever (ASF) outbreak in the German pig herd. Slaughterhouse Gosschalk is also not allowed to reopen its doors yet. The DCA Stock Price 2.0 takes a step down this week.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Last night it was announced that AVP has entered the German pig herd. This is a huge blow for the pig market, while the sector was already under pressure due to a very wide supply and disappointing sales in the summer period. The pig supply is not extensive, but pigs are still not easy to place.
Exports to Germany will probably stagnate in the coming period, because additional export restrictions will probably be imposed there and the domestic supply will therefore increase further. The Netherlands may be able to export extra to countries where German volumes will be missed.
Gosschalk slaughterhouse still closed
In addition, the Gosschalk slaughterhouse is still closed and pigs cannot be sold there. The Dutch Food and Consumer Product Safety Authority (NVWA) was expected to decide by today whether the slaughterhouse could resume operations, but the action plan for reopening has been rejected.
According to NVWA spokesperson Ahyad, the slaughterhouse has now submitted a new action plan. "We received this a few days ago. There was a conversation in which we indicated that we will re-examine the action plan. We will respond to this in a week, on July 23. Until then, Gosschalk will remain still closed."
Stock market price drops further
Because the pigs cannot be placed as well this week, the DCA Exchange Price 2.0 will be reduced. The price for slaughtered pigs drops by €0,05 to €1,41 and the quotation for live pigs drops by €0,04 to €1,06. It is the first reduction after the quotation remained stable for 3 weeks in a row. Last Wednesday the German VEZG listing drops significantly.