Inside Pigs
Vion pushes pig market deeper into minor
With pig prices showing some form of stability, Vion is coming up with another cut this week.
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The meat company lowers the quotation by €0,03 to €1,33 per kilo (including VAT), where the DCA Benchmark Price - Pigs remained unchanged on Friday. The motives behind the correction are the increasing pressure on the meat market in Europe and the lack of sales opportunities in Asia.
There are no fallback options, as the cold stores are reportedly overcrowded. In addition, Danish and Spanish exporters are dumping larger volumes on the European meat market.
No stability
Although Vion's motives are not illogical, the reduction will undoubtedly come as a shock to the sector. After significant write-downs, the pig market finally showed some form of stability.
Whether the other slaughterhouse quotations will also fall on Wednesday remains to be seen. The chance of this has not become any smaller due to Vion's reduction. Much will also depend on the changes in the German market.