News Pigs
Sow prices unexpectedly fall sharply
Pork sales in the first half of June are much less smooth than expected, but can nevertheless rest on a solid foundation. This does not apply to the slaughter sow price, which has unexpectedly fallen significantly this week. The German company Tönnies is taking the initiative.
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The large German meat company will reduce the sow price by no less than 20 cents to €1,20 per kilo from next Thursday, the lowest level since the beginning of 2023. Normally the sow quotation is only announced on Wednesday, but Tönnies is now deviating from this. There is every reason to do so, since Tönnies will no longer slaughter sows from Thursday this week.
In a statement, Tönnies justifies its decision by indicating that German retail has switched to pork produced according to the standards of Initiative Tierwohl (ITW). As a result, the demand for sow meat continues to collapse, leaving cold stores chock full. It is probably also a factor in the background that financing inventories has become quite expensive due to higher interest rates.
Tone set
Other sow prices are also expected to implode this week. In any case, the tone has been set with the initiative of market leader Tönnies. Meanwhile, pork prices are moving sideways and are expected to continue doing so at least this week. Due to the cool weather in northwest Europe, meat sales are lacking momentum, despite the European Football Championship being about to start. This is also evident from the carcass parts prices from DCA Market Intelligence which remain virtually stable this week. Only the prosecutors are under some pressure.