Analysis Pigs
Weak meat demand puts pressure on DCA Stock Market Prize
Since the middle of this week, the pig price has been under pressure. All major Dutch slaughterhouses have lowered the pig price this week. The demand for meat continues to disappoint, and in the meantime the supply has fallen less sharply than was expected after Easter.
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All major Dutch slaughterhouses decided to lower their calling prices this week. Although the supply on the market is tight, the space for slaughterhouses to earn remains limited. That is why they have adjusted their prices downwards. Compaxo, Van Rooi and Westfort lowered their prices by 2 cents, while Vion lowered its pig price by 3 cents.
The Northern European demand for meat remains relatively weak, which means that prices on the meat market are still unable to grow well with slaughter prices. High prices for beef and chicken have not yet provided much of an impetus and a good barbecue season has also failed to materialise.
This led to the rumour that the German pig price would take a big step down, which made the entire European market even more cautious. The hope that the meat prices would also take a big step down to boost the supply makes buyers hesitant. However, that reduction has not yet come. The VEZG remains stable at a level of €2,10 per kilo. This price is followed by both Tönnies and Westfleisch.
Job revival
Meanwhile, the panic about low supply seems to be ebbing away again. Just before Easter, it turned out to be more difficult for slaughterhouses to obtain pigs than expected. The sector thought that the effects of the LBV scheme could already be seen, which led to fears of empty slaughter shackles. Although the meat price could not keep up with the increase, the slaughterhouses decided to let the pig prices rise.
Since Easter, however, the number of slaughters has been more or less the same as last year's data. Insiders in the market indicate that slaughterhouses have had less difficulty filling the slaughter shackles in recent weeks. This does not mean, however, that the fear of shortages is exaggerated; the effects of the stoppers scheme will become noticeable later this year. It has just become apparent that it is too early.
The DCA Exchange Price 2.0 for slaughtered pigs drops this week from €2,14 to €2,10 per kilo, a decrease of €0,04. The price of live pigs also drops but by €0,03 from €1,67 to €1,64 per kilo.
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