Analysis piglets
Trade clearly argues for an equal piglet price
Compared to last week, the situation on the piglet market has neither improved nor deteriorated. This means that a price increase is not an option.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
The piglet market has been in dire straits for weeks. Although the supply itself is not very large, the market is mainly hampered by a lack of demand. Demand is weak due to a lack of prospects for better prices.
Calm export demand
In addition, the placement space in Germany is slowed down by the scaled-down slaughter plans there. As a result of the omikron variant of the coronavirus, slaughterhouses are struggling with a lack of staff. Traders are reporting weakening demand from Spain. There is also less need in the current market to increase production as much as possible. In other years, Spanish demand could actually set the market in motion.
Traders report a relatively large supply of slaughter sows. Multipliers are trying to deal with acute liquidity problems, which is distressing for the current market situation. Livestock feed companies also report increasing payment arrears. The need for a price revival on the piglet market is greater than ever.
BPP unchanged
However, as long as pig prices do not start to rise, this is (almost) not a possibility. The DCA BestPigletPrice therefore remains at €28 per piglet for the fifth week in a row. It is striking that almost all statements from traders focus on this. Prices have also remained the same in Germany, with a VEZG quotation at €23 per piglet.
Click here for an explanation of the DCA BestPigletPrice.