Vion reduces and pressure on piglet prices increases

For no less than sixteen weeks, the piglet price in Germany was unchanged at €85, but this week the price has dropped to €79,50 per piglet. That is a significant decrease. Yet this did not come out of the blue. After all, piglet quotations in other major European pig countries have been declining for some time. In addition, there has been considerable tinkering with allowances in Germany in recent weeks and this often precedes the reduction. 

Weak question
In the Netherlands, the DCA BestPigletPrice is also facing a fairly significant correction this week. The quotation drops by €3,50 to €65,50 per piglet. The correction is mainly a result of the lagging expectations of pig prices, which are not showing any signs of increasing for the time being. In addition, there is a summer weakness in terms of sales. Demand is very tame in both the domestic and export markets. Within the permanent connections it is not too bad, but hardly anyone inquires about free piglets.

Whether the piglet market has found a bottom due to this decline remains to be seen. Presumably, the urge of fattening pig farmers will be stimulated again when piglet prices have fallen further. What does not help is that the pork price is starting to come under pressure. For example, Vion lowers the weekly quotation this week by 2 cents to €2,04 per kilo. According to the meat company, there is a lack of demand on the meat market, which is evident across the entire line of the carcass - and especially the middle part. 

Click here for an explanation from DCA Market Intelligence on the listing.