Analysis Pigs
Will pork prices continue to follow Germany's lead?
With a brief one-week lull, pork prices continue where they were in February. Germany is once again raising pig prices and this requires a response in other European countries, including the Netherlands.
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The increase in the German VEZG listing earlier this week can safely be called a surprise. In any case, the Internet Exchange did not directly hint at it. In addition, the ink from the previous increase was barely dry. Yet the market is picking up speed again, to the delight of the primary sector and also the pig trade, which hardly has to make an effort to talk up prices.
The large German slaughterhouses such as Tönnies meekly follow the higher VEZG rating, but indicate that there is a mismatch with meat sales. There is not much choice, as the slaughter hooks often remain empty. Particularly because meat supplies are tight, this is difficult for slaughterers to afford.
Will the Netherlands follow?
The higher German pork price is a setback for Dutch slaughterhouses, as it requires a response. Especially since German pig prices are already higher. Whether (and to what extent) slaughterhouses here are prepared to increase will only become clear next week. The offer here is proportionately wider, but the pressure to increase is nevertheless palpable.
In any case, the Dutch pig trade is betting on a significant increase, because based on the statements, the DCA Stock Exchange price for slaughtered pigs will increase by €0,04 to €2,12 per kilo. The price of live pigs increases by €0,03 to €1,68.
Click here for an explanation of the listing.