There are caveats associated with ample pork supply

In terms of price trends, it's just a boring affair. Prices have been moving sideways for weeks and it doesn't look like this will change in the short term. The rumors that the German pork price was going to drop this week turned out to be somewhat exaggerated in retrospect. Yet Germany is the Achilles heel of the European pig market.

As the second largest pig country after Spain, Germany has always set sentiment. In addition, there are now more pigs for slaughter in Germany than expected. The long-term decline in recent years has stopped since the end of last year and the living supply is therefore wider. This development must be seen in the light of the unambitious slaughter plans that (German) slaughterhouses have, as a result of the tame sales opportunities on the meat market. Slaughterhouses indicate that various parts are forced to be frozen. However, pre-financing stocks has become a costly affair due to higher interest rates.

Broken weeks ahead
If we look objectively, based on market data, the number of slaughters in Germany is still declining. Even after the broken weeks after Easter, the slaughter figure remained below 700.000 pigs: about 5% less than in the comparable week last year. However, in many European countries at least three slaughter days are still missing in May due to the celebration of Labor Day, Ascension Day and Pentecost. This could further increase supply in the coming weeks and possibly put pressure on the market.

In the Netherlands, the pig supply is also ample, but this must be seen in relation to the weak demand. Want to do that Vion Recently, the pigs have been less heavily hooked, which does not help to relieve the burden on the market. However, with approximately 300.000 slaughters in full weeks, the numbers are comparable to last year. So the range is certainly not problematically wide.

Little patience
The primary sector is eagerly awaiting an increasing demand for pork. The wet and chilly spring weather doesn't help in that regard. Overseas export opportunities are very limited, although insiders say very cautious improvements can be seen. With European football and the Olympic Games on the horizon, events are emerging that provide the prospect of better momentum in the market. Meat component prices are relatively stable during this period and, according to slaughterhouses, there is absolutely no room for higher purchasing prices. However, fattening pig farmers have little patience due to the relatively high piglet costs that they have been confronted with for months.

DCA Benchmark Price - Pigs
For the time being, however, a higher pork price does not seem to be a possibility. Any increase is likely to occur earlier in June than the period at the end of April or beginning of May. The DCA Exchange Price 2.0 therefore remains for the seventh week at €2,12 per kilo for the pigs slaughtered. The price for live pigs is also the same at €1,68 per kilo.

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