Uncertainty and lack of liquidity inhibits exports big

Over the first eight weeks of the year, an average of nearly 114.000 piglets crossed the border every week. In the following four weeks, the number of piglets exported dropped significantly to around 101.000 heads per week. In particular, exports to customers in the main countries, Germany and Spain, declined. It should be noted in the trade that there are currently enough piglets available for the demand and that it sometimes takes a while to find a place.

Lack of trust and payment capacity
The export to Spain decreased in weeks 10 and 11 to approximately 25.000 units. This is partly due to the mutation system in Spain, as can be said in the piglet trade: "In Spain, pig prices can rise by a maximum of €0,06 per kilo of slaughtered weight per week, for piglets a maximum increase of €6 applies. Spanish fattening pig farmers don't see yields increasing as quickly as here. If an export piglet becomes more expensive than €30 in two to three weeks, buyers quickly give up, and we saw that happen in recent weeks." The Spanish pig price has now reached the maximum increase of €0,06 per kilo for a number of weeks in a row and is now at €1,41 per kilo of live weight.

Moreover, in Spain there is perhaps even more uncertainty about the availability of feed. Feed prices there are also at record levels. "A simple calculation is then made and the conclusion is reached that people first want to wait and see whether the pig price will continue to rise quickly," says a piglet trader. The uncertainty in the market has also ensured that there are currently more empty stables than usual in the past month. "Should the pig price in Spain continue to increase in the coming weeks, this could give an impulse to demand. Although we are currently seeing a little more uncertainty in our region about the development of pig prices in the coming weeks." This uncertainty about the return also affects buyers at other European destinations.

In addition to this problem, another factor is the high investment it now requires to lay up a piglet and to be able to feed it to slaughter. Opportunities makers across Europe have seen a sharp increase in liquidity needs on deposits. This, in combination with the uncertainty about the price and availability of feed, and the question to what extent pig prices will rise further, mean that people are somewhat hesitant to impose.

Prices corrected
Traders have noticed that the supply of 'free' piglets has therefore felt somewhat more generous in recent weeks and that the prices for export piglets are now under slight pressure. While large flocks (>500) piglets last week still yielded between €66 and €68 excluding VAT, this week it is a fraction lower. The field mentions prices between €62 and €64. Collecting couples bring in less money.