Dutch piglet market remains fragile

It has been pulling and peddling for weeks to sell the piglets. Due to a lack of confidence, fattening pig farmers are holding off, despite selling prices that are close to previous record levels. The cost has also risen high. Moreover, the wheat price has a strong tendency to increase again at the moment, which could thwart a fall in compound feed prices. The - justified - fear is that the pig price will not get through the winter months unscathed. The margins for entrepreneurs in the fattening pig sector are too thin to take a risk by imposing extra flocks.

surpluses
Exports cannot pull the piglet market out of the mud either. The numbers going to Germany are structurally lower. Spain is also not short of large numbers. All this results in a piglet market with surpluses. For the so-called free market couples, only €40 per piglet is often offered. This also puts pressure on the DCA BestPigletPrice which drops by 50 cents to €44,50 per piglet. The German VEZG price can hold up at €52,50 per piglet.

Despite the recent stabilization of the pig price, the pressure on the piglet market continues. A lower price is the only way to get sales going, or so traders think. This is a painful development for sow farmers who have been confronted with losses for months. Historically, it will take almost half a year before prices have serious upside potential again. 

Click here for an explanation of the DCA BestPigletPrice.