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Analysis Pigs

Bright spots pig market, but no jubilation

June 1, 2022 - Stef Wissink

The situation on the pig market seems to be relaxing further. The market is giving some more positive signals about the meat trade.

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In recent weeks, quite a few (heavy) pigs went to distant destinations. This has taken some of the pressure off the market. In particular, the boars that are very difficult to place at Dutch and German slaughterhouses were in considerable demand among Spanish buyers, the trade notes.

First signal that Dutch supply is relaxing?
Although there are still more than enough pigs available in our own country, the sharp decline in average slaughter weights seems to be the first sign of the future. While the average slaughtered weight was around 101,5 kilos for weeks, this has now fallen to 99,8 kilos in week 20. In Germany, 673.000 pigs were processed last week. The average slaughter weight here dropped to 97,1 kilos, a decrease of 0,1 kilo compared to a week earlier. 

What is hindering a real revival of the Dutch pig trade is the lack of German demand for pigs for slaughter. There is also hardly any interest for less money. As a result, the supply on the Dutch market still feels ample. German slaughterers find it difficult to value the extra 'free' pigs (in export). It appears that keeping hooks empty costs less on balance than utilizing the slaughter capacity. It is disappointing for the entire sector that despite the low German slaughter numbers, the market is not receiving any significant boost.

The German VEZG quotation is €1,80 per kilo of slaughtered weight. The German slaughterers Tönnies and Vion follow.

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