Analysis Pigs
Pig market leaves tough mountain stages behind
Pig prices are continuing to climb – in cycling terms – on flat terrain. After a few weeks of sometimes steep declines, the market has calmed down. Surprisingly few pigs are being slaughtered in the Netherlands, but there's no shortage of them.
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After a few turbulent weeks, the pig market can breathe a sigh of relief. While it was initially thought the market might peak, the opposite has happened. It can be concluded that slaughterhouses' margins, which had come under considerable pressure this spring, have recovered somewhat before the summer holidays.
Pig prices in the Netherlands have fallen by roughly 20 cents, while the raw material value of the carcasses has fallen by around 15 cents, according to the flesh mutations of DCA Slaughterhouses still say they can't report positive figures. The reason is the persistently poor meat market, which caused slaughterhouse results to turn negative during Q2.
Pressure now eased
The pressure for further price reductions has subsided, however. A market turnaround is completely out of sight. This doesn't usually occur during the summer holidays, when many people (read: consumers) are abroad, weakening domestic demand for a few weeks. Nevertheless, this doesn't lead to further price pressure on the residential market. This is partly due to significant markdowns, but also due to tight supply putting a floor on the market. Supply is limited in both the Netherlands and Germany.
Low slaughter figures
This is also evident from the slaughter figures, which are downright low in our country. With 253.888 slaughtered last week, the slaughter figure was 5% below last year's level. In a market with better meat sales opportunities, these numbers would be a problem for slaughterhouses, but for now, they are content with it. At approximately 720.000, the slaughter figure in Germany is in line with last year.
Stable DCA Scholarship Price
Traders feel that unchanged is the maximum achievable at this time. Therefore, increases are not being considered, but, as indicated, decreases are also no longer an option. Consequently, the DCA Exchange Price 2.0 remains at €1,93 per kilo for slaughtered pigs. The price of live pigs is stabilizing at €1,50 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.