News Pigs
German pig prices fall sharply
It had been going around in the market for a while, but on Wednesday afternoon it really happened. The German pig price has fallen sharply this week. Weak sales in Northern Europe are the main reason for the decline.
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In recent weeks, the market has regularly heard that a major step downwards would be taken. So far, it has not happened, but this week it finally happened. The VEZG has taken a major step downwards and dropped by no less than 15 cents to €1,95 per kilo. With this, the VEZG is exactly following the slaughter price of Germany's largest slaughterhouse Tönnies.
The lower price is a direct result of the weak meat sales. In Northern Europe, the demand for pork, despite the high prices of beef and poultry, is lagging considerably. As a result, the slaughter price has risen much less than the average carcass price. For example, since the pig price reached its lowest point in early January, the DCA Exchange price has risen by 38 cents. According to the DCA pork monitor the carcass price rose by only 26,29 cents in the same period.
The market had already prepared itself for the lower German quotation. The Dutch slaughterhouses anticipated the decline last week and lowered the prices by 2 to 3 cents.