Analysis Pigs
Plus for piglet price despite strong resistance
Although there is a lot of resistance among fattening pig farmers, the DCA BestPigletPrice realized another price increase this week. A tight supply is the basis for this, as well as strong Spanish export demand where integrations offer big money for Dutch piglets.
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Two forces are working against each other on the piglet market in mid-January. There is a lot of resistance from fattening pig farmers on the domestic market about what they consider to be too high piglet prices. This resistance has been strengthened by the falling pig prices in recent weeks. The decrease now appears to have been achieved, because this week Vion is keeping the pig price the same at €1,93 per kilo (including VAT). Carcass parts prices are still falling on the meat market, albeit much less sharply than in the previous weeks. This can also be seen as a signal that the market is moving towards a bottom.
The other side of the coin is that the piglet supply is tight. And in addition, export demand, especially from Spain, is good. Very good indeed, it can be said. Spanish integrations offer good money to avoid missing out, exporters indicate. This means that on balance there are more buyers than suppliers of piglets.
However, not every trader is in favor of a higher piglet price in order to respond to the resistance of fattening pig farmers. There is also a group of traders who believe that the piglet price should be increased to do justice to the market. Preferably even with a few euros. This ultimately results in an increase in the DCA BestPigletPrice from €0,50 to €57,50 per piglet. It is also good to note that the transfer prices with regard to the BPP have been adjusted from the new year, as we reported last week. have reported. The German piglet price leveled off at €62 per piglet after an increase last week.
Click here for an explanation of the DCA BestPigletPrice.