Analysis Pigs
Declining pig market repeats itself
The price developments on the pig market are a repeat of last week. Where the German listing can remain, Dutch slaughterhouses are once again implementing a reduction.
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When Vion lowered the price again by 2 cents on Monday, you could already see that the pig market would fall into the same pattern as last week. Even then, the market leader reduced the listing, while the German market remained stagnant. Other slaughterers in our country (at the time of writing Compaxo, but probably also other slaughterhouses) are willingly going along with Vion's initiative to expand margins, although meat prices are also under pressure.
This development is a setback for pig farmers and traders who sell to domestic slaughterers. In the meantime, the Dutch market has already fallen more than 5 cents more than in Germany, where the VEZG quotation has been at €2,30 per kilo for a few weeks. This increases the incentive to supply Germany, where there are shortages. This is also happening increasingly.
More pigs to Germany
In week 32, just under 20.000 live pigs were exported to Germany, the highest number in a year and a half. Dutch slaughterhouses seem to be satisfied with this trend, as the numbers involved are not relatively large. Buyers currently prefer monitoring margins to extra pigs on the slaughter line.