German slaughter figure falls, pig price remains stable

The VEZG quotation has now been at €1,85 per kilo for six weeks. The large slaughterhouses now use a Hauspreise that is 10 cents lower, but the producer associations in Germany do not want to bow to that pressure. Prices are also stable in the Netherlands and neighboring countries. In itself, the current price levels are not bad. In 2019, which was a good year for pig farming in terms of returns, the German quotation was even slightly lower than now. However, the high feed and energy costs mean that some pig farmers have liquidity problems, Rabobank announced earlier this week.

Many pigs, but low slaughter figures
Looking at the market, there is no prospect of a further price increase. Dutch slaughterhouses do not dare to build up stocks due to the threat of African swine fever. As a result, the meat market is less speculative and there are no shortages. All the more so because the pig supply in the Netherlands is quite large and will probably remain large.

The slaughterhouses in Germany also speak of a wide range. This lecture must be seen in the light of the lackluster meat sales. The slaughter figure in Germany even fell to 716.594 pigs last week. This is the lowest number this year, except for the broken slaughter weeks. This is also 13% below the long-term average. The conclusion is that the slaughter capacity in Germany is far from being fully utilized, but slaughterhouses are at peace with that at the moment. Maybe the empty hooks will start playing when the holiday period is over. Normally the slaughter figures rise again, but then the pigs have to be there. Based on the sharp decline in the German pig population, the overcapacity in slaughterhouses seems to be here to stay.