Analysis piglets
Piglet price rises again, now with more conviction
In the past week, the DCA BestPigletPrice - based on the input of pig traders - managed to achieve an increase with great difficulty. Due to the friendlier mood in the pig market, the increase this week is a lot more convincing.
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Now that pig prices are on the rise, this also offers scope for piglet prices. Little has changed in the market situation in itself: the supply of piglets in the Netherlands is reasonably well-organized, but the demand is not enough. Still, significantly more traders are opting for an increase in the BPP this week than last week. The difference is that last week it was only expected that pig prices could rise, in the meantime the market has actually increased.
At the same time, the slaughterhouses in Germany are making a lot of sense, claiming that the increase is not possible based on the situation on the meat market. Next Wednesday it should become clear whether the German slaughterhouses will abandon their Hauspreise or continue to use it. A similar split occurred around the turn of the year, which then lasted for weeks. In the end, it was the VEZG pig quotation that had to give in. It is probable that the slaughterhouses are now going up with their quotations. Westfort already made a start last week and Vion is raising the listing this week by €0,04 to €1,32 per kilo. The meat group does indicate that this increase in the meat market cannot be fully realised.
Piglet prices up
The VEZG piglet quotation will increase this week by €1,50 to €24,50 per piglet. There are signals from Germany that sales are going a little easier and that offers perspective. Historically, the piglets are now dirt cheap, yet fattening pig farmers are reluctant to impose. With the sharply increased feed and energy costs, a healthy margin is not yet in sight. The air in the sector can only clear up when pig prices take serious steps. In view of the resistance expressed by slaughterhouses, that situation is not yet in sight.
This does not alter the fact that meat sales are indeed improving considerably, as is evident from the parts prices of DCA Markets this week. The hams and ribs increase by €0,04 per kilo, while the shoulders even increase by €0,05. Such increases have not been realized for quite some time.
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