Shrinking supply gives pig price finally a push

After the German slaughterhouses started cutting quotations in mid-June last year, the tone was set for a long period. The German pig quotations of market leader Tönnies and Vion fell from €1,54 per kilo carcass weight in week 23 to €1,20 in week 39, after which they remained at this extremely low level for quite some time. Although slaughter numbers have been tight for some time, the ever-shrinking supply now seems to be pushing the market upwards.

Vleeshandel is taking its first steps
Even though the meat trade has not yet seen any major impulses, the carcass price has already gained a few cents per kilo in value due to the somewhat improved prices for hams. Relaxations of the corona measures are planned in more countries in the coming period, which could further increase demand.

Traders also notice the improving mood on the pig market this week and indicate that animals ready for slaughter are somewhat easier to place than a few weeks ago. Although a large number of very heavy pigs still have to be sold for export this week, slaughterhouses are sometimes taking on an extra flock left and right. In Germany people are well on their way to slaughtering.

German slaughterers hung almost 826.000 pigs on the hook last week. That was considerably more than the week before, when the number remained at 787.000. The problem of staff loss due to corona seems to be fading into the background, albeit slowly. The slaughtered weight remained unchanged at an average of 97,3 kilos.

The German VEZG quotation for next week (17-2 to 23-2) has been set at €1,25 per kilo of slaughtered weight, a plus of €0,05. It is not yet clear whether the slaughterhouses will accept the increase.