Analysis Pigs
Mood on the pig market feels a bit colder
After the historic price jumps of last month, the pig market now feels less positive. The supply in Germany is larger and more animals ready for slaughter are also offered in our own country. The slaughter world is stepping on the brakes. The hope is that it is a temporary dip in sentiment.
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The slightly wider range in the Netherlands is mainly due to the TVL scheme for the first quarter. Detained pigs are offered this week. In Germany, the average slaughter weight has already risen somewhat in recent weeks. Pigs were probably kept here to take advantage of the weekly soaring prices.
At the same time as the increasing supply of pigs, the slaughterhouses are less interested in buying pigs. This applies to both Dutch and German customers this week. The increased supply and reduced demand ensure that the supply is sufficient. With the cancellation of slaughter days in the next two weeks, this situation will not change much. A stable listing seems the maximum achievable and the most obvious. Traders do note that the somewhat more difficult situation does not mean that the supply is suddenly excessive and that it mainly appears to be a temporary easing.
German market rose sharply faster
Dutch slaughterhouses have clearly had more trouble keeping up with the price increases in the past period. The German slaughterhouse quotations eventually increased by €0,15 per kilo. The big difference seems to stem from the lower German pork supply. As a result, the German self-sufficiency rate has fallen sharply. This in a period in which almost all major retail parties demand that the shelves be filled with products of German origin.
The German pork market is now considerably less export-oriented and, according to slaughterers, is therefore more separate from the Dutch market. DCA price movements for pork components were broadly unchanged this week.
Germany slaughter figures slightly lower, weight stable
The number of slaughters in Germany was a fraction lower last week, at about 782.000. The mean sex weight remained unchanged at 97,7 kilograms.
The German VEZG quotation remains stable at €1,95 per kilo slaughtered weight. This also applies to the quotations of Tönnies and Vion. The euphoria of a few weeks ago has clearly ebbed away in the sector. Something that must also be seen in conjunction with the ever-increasing costs in the sector.