Analysis Pigs
The Dutch pig market is succumbing to heavy supply
Dutch slaughterhouses have clearly implemented a significant reduction in the pork price this week, thus deviating from the stable German market. The large and heavy pig supply weighs heavily on prices.
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After weeks of stable prices, there is finally movement on the market, although not the desired one for pig farmers. Vion's reduction was willingly followed by the other Dutch slaughterhouses, or even exceeded. So far, German slaughterhouses do not feel the need to reduce prices and support the unchanged VEZG quotation.
High weights
The Dutch market appears unable to withstand three weeks of low slaughter figures. In the first week of January, the slaughter figure also remained below 250.000 pigs. This is low compared to previous years. The need for slaughter is apparently not that great. The result of the low slaughter numbers is rapidly increasing weights to an average of more than 102 kilos. This is the highest level since 2021. In Germany too, people are 'complaining' about heavy supply, without it having any influence on pricing there.
Weak meat sales
Meat sales remain weak, both in retail and food service. The week of frost was too short for a serious slowdown in growth and not long enough to give meat sales a serious boost. Export demand outside Europe is also persistently weak.
DCA Benchmark Price - Pigs
Due to the urge to reduce prices at Dutch slaughterhouses, the DCA Exchange Price 2.0 has no choice but to make a significant reduction. Based on traders' statements, the quotation for slaughtered pigs drops by €0,10 to €1,98 per kilo. The price of live pigs drops by €0,09 to €1,56 per kilo.
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