Analysis Pigs
Slaughterhouses take a bad turn in pig trade
The improving pig prices last week are no prelude to more. The German pig price leveled off this week and Dutch slaughterhouses only partly followed the increase in the DCA Stock Exchange price. The latter causes a lot of chagrin in the pig trade.
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Although pig farming is financially profitable at the current price level, there remains a hunger for more. That is why it is a major setback that Dutch slaughterhouses unanimously only increased by 3 cents, while 5 cents was really the direction that the trade had indicated.
In any case, slaughterhouses are remarkably 'fixing' each other in their pricing. Van Rooi, Compaxo, Westfort and the Pali Group jointly quote €2,16 per kilo. The call prices have been identical since March, although there is often a penny or more in between. Only Vion is three cents higher excluding VAT. So it largely comes down to the allowances to outdo each other. Trumping is certainly also an issue, because the pigs are being pulled proverbially hard.
Full slaughter weeks
Although the shortage has been camouflaged in recent weeks, this will change in the near future when slaughter takes place every day again. In the Catholic parts of Germany, Corpus Christi will be celebrated next Thursday and there will be another day of slaughter. Perhaps this is why the price revival did not continue.
Traders indicate that they find Germany an interesting alternative, especially now that Dutch slaughterhouses are mutating as they go. It is therefore possible that more live pigs will be sent to Germany in the coming weeks. This could accelerate the seasonal decline in pig supply in our country.
Competition in Asia
The impulses from the meat market are too limited to allow the live market to rise further. Sales of barbecue parts are continuing well, but sales of by-products are only so-so. Competition from Brazil and the United States has been fierce for some time, according to the meat trade. In terms of pricing, Europe is simply too expensive, despite the weakening euro.
A further increase in pig prices is not an option at this time. With the exception of a few, the Dutch pig trade certainly does not want to accommodate slaughterhouses. This means that the DCA Exchange Price 2.0 for slaughtered pigs remains at €2,30 per kilo. The price of live pigs remains the same at €1,82 per kilo.
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