Analysis Pigs
Vion takes the initiative and significantly reduces pork prices
What was already hanging over the market is now also reflected: Vion lowers the weekly quotation and quite significantly. This is due to what they say is very difficult meat sales and also a large supply of pigs. Due to the pressure on pig prices, the piglet price remains the same.
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Vion reduces the pig price by €0,06 to €1,95 per kilo (excluding VAT). In mid-December, there was already talk in the market about a reduction in the pig price, and in the second week of January it turned out that everything apparently became liquid under pressure.
The meat company is taking the initiative in lowering the pork price. Vion's move will probably lead to a response from other slaughterhouses in the Netherlands and Germany later this week. The ample supply of live pigs and also weak meat sales are the causes of the decline. A week of winter weather with growth slowdown and perhaps slightly better meat sales, the situation may not help.
Bad timing
Due to the weak pig market, piglet prices will remain the same for the time being. In other years, the piglet price sometimes immediately resumed its upward trend in the new year, after the broken weeks. So things are different this year.
Viewed in isolation, piglet sales are continuing well at the beginning of 2024 and the supply is clear. Especially after the broken slaughter weeks, domestic sales opportunities are increasing again, just as export demand is also increasing. However, in view of the price drop(s) on the pig market, an increase in the piglet price would be poorly timed, according to traders.
DCA BestPigletPrice
Based on the statements, the DCA BestPigletPrice remains the same for the fourth week in a row at €69,50 per piglet. The German VEZG piglet quotation is also the same at €73 per piglet.
Click here for an explanation of the DCA BestPigletPrice.