Analysis Pigs
Strong allowances force piglet prices further up
Piglet prices are rising further, as is the DCA BestPiglePrice this week. A motivation often given by traders for this is to keep surcharges in check.
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Now that pig prices have leveled off, rising piglet prices are coming back into the spotlight. For fattening pig farmers, the increasing purchasing prices are difficult to digest, now that their selling prices are not rising any further. Yet many traders argue for a further increase in the Dutch piglet price.
This mainly has to do with the allowances, because they are in danger of falling further out of line. There are rumors in the market that percentages of 40% (!) on top of the BPP are sometimes negotiated. That can be described as unhealthy high. Only a 'strict' piglet price can somewhat prevent this rat race, it is indicated. In addition, the (Spanish) export demand for piglets is also persistently good. Most weeks the export figure is above last year's level, according to data from RVO.
Based on the statements, the BPP will increase this week by €1,50 to €76,50 per piglet. A similar increase is visible for the VEZG piglet price, which amounts to €83 this week.
Click here for an explanation of the DCA BestPigletPrice.