German pig price surprised with new plus

With an increase of €0,05, the VEZG quotation will rise to €2,10 per kilo. This breaks the record again. The increase is unexpected, the listing stabilized last week and seemed to be out of the market. Prices also leveled off in the Netherlands and neighboring countries.

It is still doubtful on Wednesday afternoon whether the large German slaughterhouses such as Vion and Tönnies will follow the increase. Tönnies in particular made an emphatic vote in recent weeks and indicated that further price increases were not feasible, in view of the leveling off of meat prices.

Meanwhile, slaughterhouses are struggling with high energy prices. In response, Westfort introduced an extra surcharge on the meat component prices, due to the sharp rise in energy prices. Other slaughterhouses may also come with an energy surcharge, that's the idea in the meat market.  

With 733.809 slaughterings in the past week, the German pig supply is tight on paper, although this seems to be the new reality due to the shrunk animal numbers. The rising German pig price will probably find support there. In the Netherlands, the supply is relatively wider, which means that the road to a higher pig price appears to be closed. But the Dutch market may be given a new impulse by the unexpected German plus.