Pig market is finally getting back in shape

Last week, German slaughterers still used a Hauspreise, but this week a backsail had to be taken. The large slaughterhouses such as Tönnies, Vion Germany, Westfleisch and Danish Crown had no choice but to significantly increase their listing on Wednesday. The supply is too tight to slow down the price recovery, although slaughterhouses are creating a lot of mood. They claim that they cannot keep up with the increase on the sell side, but are losing out because of the tight supply.

Slaughter numbers are rising
However, there is no need to doubt the margins of slaughterhouses. The improving slaughter figures show that there is indeed the will to slaughter. In the Netherlands, 320.000 pigs were slaughtered last week, the highest number since mid-December. The slaughter figures are also moving upwards in Germany, after a dip for weeks due to the many corona infections among slaughterhouse employees. Last week the slaughter figure again exceeded 850.000. The hooks must also be full next week, as shown by the good demand for pigs that are ready for slaughter. There is also a lot of demand for pigs in Poland and Denmark.  

The Internet exchange surprised again today (February 25) by rising by €0,13 to €1,48 per kilo. If the auction price holds up next Tuesday, it is not unlikely that the German VEZG quotation will increase significantly again. The market now has the momentum to push through and the producer associations in Germany probably want to take advantage of that. It is also remarkable that the large meat stocks in Europe are not an obstacle. That was feared. 

Better in shape 
Although the market is now improving strongly, 'the sky not the limit'. The Chinese demand - which is crucial for the valorization of by-products - is still failing. The sales opportunities in Japan are good, but less large volumes go there. However, the sales opportunities in Europe provide a lot of support. The traditional Easter demand is already noticeable, while the end of the corona measures also has a stimulating effect. Moreover, the war between Russia and Ukraine is not a direct threat to market sentiment. In short: the pig market is starting to get back into shape. Although there is still a long way to go for decent returns. 

Based on the specifications, the DCA Scholarship Prize 2.0 can take a big step upwards. The quotation for the slaughtered pigs will increase by €0,10 to €1,31 per kilo for the coming week. The price for the live pigs plus by €0,09 to €1 per kilo.

Click here for an explanation of the listing.