Labile pig market gives piglet price a knock

The unexpectedly large drop in the German pig price has shaken the sector considerably. A price reduction was in the air somewhere, but this order of magnitude was not expected. The fact that the quotation was at a record level does not say much. Due to the high feed and energy costs, the margin in fattening pig farming is limited.

Also in the Netherlands and surrounding countries colors the pig prices red, just like meat prices do. At the beginning of October the market is clearly in a downward spiral. The piglets that are now being laid up will be marketed as fattening pigs at the end of winter. With long winter months ahead, amid economic downturn and high inflation, this does not offer much perspective.

Low demand, growing supply
The demand for piglets has deteriorated in recent days, traders indicate. Export demand was already tepid and unlikely to improve. This development is bad, as the supply of piglets is actually more extensive. Traders report higher delivery weights. More couples are available for the free market and they put pressure on prices.

The German VEZG piglet price is declining sharply this week and drops by €3,50 to €52,50 per piglet. The DCA BestPigletPrice cannot avoid a correction either, although some traders continue to argue for this. The quotation drops by €1,50 to €45 per piglet. It is currently difficult to estimate where the market will move in the coming weeks. The shrinkage figures of the European pig herd offer support on paper, but the market currently feels unstable and shaky. 

Click here for an explanation of the DCA BestPigletPrice.