Analysis Pigs
Stopper depresses sow price, pig market holds firm
Not the pig prices, but the sow market demands attention this week with unexpectedly large price reductions. Due to the stoppers regulation in our country, the supply is so large that there is no remedy for this. Especially now that the meat processing industry is going to slow down a few gears in the coming weeks.
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With a reduction of €0,15 to €0,85 per kilo, the sow quotation of Tönnies, more or less the benchmark in North-Western Europe, is returning to the lowest level since the beginning of 2022. Other sow quotations have followed at a similar pace. The reduction is a direct result of the large supply of slaughter sows. This is largely due to Dutch breeding companies that are ceasing to operate and will be empty in the coming months.
Multipliers are running out of steam
With Christmas approaching, the supply for sow slaughterers is no longer manageable. Slaughterhouses indicate that they have little need to freeze sow carcasses. The situation is expected to continue into early 2025. Traders indicate that they can still deliver a few shipments around the holidays if they are lucky. It will take a while before the meat processing industry gets going again in the new year. In addition, many Dutch breeding companies will continue to operate empty in the coming months, which means that the supply will remain ample. For them, the significantly lower sow price is a disappointment, although the stoppers scheme nevertheless offers generous compensation.
DCA Stock Market Price Remains the Same
The supply on the meat pig market is also increasing, now that the broken weeks are approaching. Unfortunately, this cannot be substantiated with slaughter figures that have not yet been updated by RVO for the past few weeks. The Christmas impulse of extra demand for luxury meat parts is now behind us and the market is now orienting itself towards the new year. The supply is greater than the demand and therefore gives a pig's lump. For the time being, this is not yet leading to price pressure, although this remains a realistic scenario for the new year.
For the time being, the DCA Beursprijs 2.0 continues to move sideways, as was the case in previous years. The quotation for slaughtered pigs will remain the same next week at €1,89 per kilo. The price of live pigs is also unchanged at €1,48 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.