Slaughterhouses do not respond to German plus

The German VEZG quotation rises this week by €0,03 to €1,23 per kilo, although slaughterhouses (such as Tönnies) are sticking to a 'Hauspreise' of €1,20 per kilo. Although supplies for Christmas have continued reasonably well, the new lockdowns are disrupting demand. This while the meat market was already full. The DCA quotations for pork parts also remained unchanged this week. Moreover, there are sufficient animals ready for slaughter, especially in the Netherlands. The chance that Dutch pig prices will respond to the German increase therefore seems small. 

Another plus in German slaughter figures
The number of pig slaughters in Germany has been increasing for weeks and more pigs were slaughtered last week than in the previous week. A total of 878.449 pigs were hanging on German hooks. That was more than 16.000 more than a week earlier and it is the highest number in a long time. The slaughter weight decreased further this week and amounted to 97,3 kilos, which is 0,2 kilos less than a week earlier.

It appears that in Germany there are no large numbers of animals ready for slaughter waiting for slaughter. That is positive news, bearing in mind the loss of slaughter capacity around the holidays, and may also take some pressure off the Dutch market. Nevertheless, market parties are eagerly looking forward to the market launch in the coming year. It cannot be ruled out that prices will have to take a step back. The supply may then (due to canceled slaughter days) be too large for the demand from the slaughterhouses. In addition, the meat trade is often a bit lukewarm in the first weeks of the new year.