That's why the piglet trade is so difficult

While the German VEZG piglet price still proudly stands at €60 per piglet, the Dutch quotation is under heavy pressure. The reason for this? The Netherlands is dependent on exports, while Germany is an importing country. In addition, the numbers that go to Germany every week are shrinking considerably.

German sales fell sharply 
A few numbers in a row. Sales to Germany fluctuated around 50.000 in recent weeks. This relatively low number is partly due to the broken weeks, but apart from that, the export figure has only managed to rise above 60.000 since February. Last year the export figure was far above that level and one year before that it was even well above 80.000. Sales to our eastern neighbors have therefore taken off quite a bit. Partly due to the discontinuation of German fattening pig farmers and partly due to the so-called '5D strategy', which means that Dutch piglets are less popular.

Exports to Spain are also described as disappointing, although matches not with the export figures. From week to week, these are at or even above last year's level. However, the German drop in demand weighs heavily on the total. On balance, 20.000 to 40.000 less piglets are exported from week to week. In recent weeks, the number has even fallen below 100.000. It is true that the Dutch sow herd also declined, albeit relatively less.

In other words, more piglets must be sold domestically. And that is certainly not the case. Especially now that pig prices are still below the calculated cost price, so that in theory it is not profitable to impose flocks. This increases the supply of free piglets. 

Higher pig price not in sight
As a result, the piglet price is under pressure, to the annoyance of breeders who also work at or below cost price. The only remedy to escape this is higher pig prices. However, at the moment they are not in sight. All the more so now that DCA's carcass part prices are down again this week, despite the fact that the meat trade was described even more positively last week. Some traders expect that the German pig price cannot hold up on Wednesday, but that is still in the future. 

Later in May and early June, two more trading days are canceled due to Ascension and Pentecost. It is therefore plausible that both the pig and piglet supply will remain ample in relation to demand for the time being. For now, the DCA BestPigletPrice remains under pressure. Based on the statements, the quotation decreases by €1,50 to €48 per piglet. As of May, the target amount for withholding fixed costs will be increased by €0,20 to €2,30, as previously stated by DCA announced. 

Click here for an explanation of the DCA BestPigletPrice.