Inside Pigs
Rising supply of pigs pushes price down further
The pig market has taken a few knocks in recent months due to weak demand for pork. This, with a European wide range of meat, put pressure on prices. Now that the slaughter numbers are also rising again, the VEZG listing has to take another clear step back.
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After the slaughterhouses decided last week not to accept the unchanged quotation (€1,42), the pressure on the market quickly increased again. The slaughterers decided to pay only €1,35 per kilo of slaughtered weight for the non-contracted pigs. This week, the VEZG cannot withstand the pressure and the price has to take a big step back again.
Supply is increasing again
While the meat trade has been under great pressure in recent times, parts prices now appear to be stabilizing. The main reason for the further declining quotations appears to be the increasing supply of pigs for slaughter in Germany. This, in combination with the continued quiet demand for pork, means that the VEZG has to give in to the wishes of the slaughterhouses for lower purchasing prices.
The export markets are under further pressure for German slaughter companies. There are rumors that Vietnam may want to suspend the import of German pork again after the discovery of African swine fever in domestic pigs. The country had just opened its borders again this spring for imports from Germany. The current developments do not contribute to peace in the market.
All in all, the leading VEZG quotation must take a step back of €0,05, resulting in a level of €1,37 per kilo of slaughtered weight. It is currently unclear whether the slaughterhouses accept this listing.