German pig price pushes to new record

The German pig price (VEZG) will rise this afternoon by €0,05 to €2,05 per kilo. This surpasses the existing record from 2019 by €0,02. Moreover, it is only for the third time that the pig price has managed to rise above the €2 limit. The times before this never lasted longer than two weeks. The pig market is now in good hands to be able to hold on to the relatively high price level. Due to the high feed prices, entrepreneurs do not experience this as such.

Growth slowdown strengthens tight supply
The tight supply of pigs is at the root of the recent and, moreover, unexpected price recovery. Just over 700.000 pigs have been slaughtered in Germany in recent weeks, leaving a significant part of the slaughter capacity unused. In the Netherlands, too, slaughter figures have fallen to below 300.000 pigs. The decline is in line with the seasonal pattern, but the tightness is exacerbated by the ongoing summer heat. However, the slowdown in growth will ease when cooler weather arrives after Thursday. However, the tight supply is not yet a thing of the past as a result of the shrinking animal numbers in northwestern Europe. The end of the summer holidays boosts the demand for pork. Pork exports have also improved in recent weeks. All these factors mean that the pig market is in better shape.

The developments also have a positive effect on pig prices in the Netherlands. For example, Compaxo is increasing the quotation this week by €0,04 to €1,80 per kilo. No new records have been broken yet. This is partly due to the fact that pricing in the Netherlands is lagging somewhat behind that in Germany. One reason for this is that the supply is relatively wider in the Netherlands.