Analysis Pigs
Dutch slaughterhouses are once again not up to scratch
Dutch slaughterhouses have increased their quotations considerably in recent weeks, but are still unable to satisfy fattening pig farmers. They are confronted with sky-high piglet costs and also see that German slaughterhouses are pressing the accelerator harder. All this is taking place in a volatile market that is currently leveling off, but may start moving again in the coming weeks.
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This week too, Dutch slaughterhouses did not fully comply with the increase in the German VEZG quotation, which rose last week by €0,05 to €2,20 per kilo. This was answered unequivocally by the five major slaughterers in our country with an increase of 3 cents. In mid-February, 2 cents were also deviated from the German increase, and several times before that. Around the turn of the year, Dutch slaughterhouses were trading 7 cents below the German quotation, but now the difference is 15 cents.
Traders indicate that the difference is not made up through surcharges. And so the primary sector feels somewhat destitute. Whether that is justified is another matter. As is known the margins in the slaughterhouse world, wafer-thin, or even negative.
Tight German supply and heavy pigs in the Netherlands
The fact is that the pig supply in Germany is tighter than in our country. German slaughterhouses therefore have to do everything they can to keep the slaughter hooks filled to some extent. This is desirable, especially now that meat supplies in Europe are tight. With just under 735.000 pigs, Germany slaughters below last year's level, despite additional imports from the Netherlands and probably also Denmark. It once again underlines the tight supply in Germany.
With just over 300.000 slaughters, the Dutch slaughter figures are slightly above last year's level. At the moment, these numbers are enough to fill what they say are tame meat sales. Slaughterhouses feel comfortable with this, supported by the average slaughter weight, which is still well above 102 kilos at the beginning of March. This is downright tough.
Energetic market towards Easter
Due to the tight German supply, the pig market feels energetic towards Easter. Further price increases in the coming weeks are not unlikely, as is often the case at this time of year. The stable change in the VEZG listing earlier this week therefore resembles a breathing space. However, the resistance of slaughterhouses is quite high. They indicate that an improvement in meat sales is necessary for further increases in pig prices.
Based on the statements, the DCA Exchange Price 2.0 remains the same this week at €2,12 per kilo for the slaughtered pigs. The price of live pigs is unchanged at €1,68.
Click here for an explanation of the listing.