News Pigs
Vion rectifies and keeps the listing the same
Vion initially cut pork prices this afternoon, but the meat company reversed its decision later today. The ongoing weakness in the meat market has apparently caused pork prices to remain too tight, but tight supply and stable prices from competitors are likely the reason for the price adjustment.
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The €0,04 drop was withdrawn a few hours after the announcement, leaving the weekly price at €1,80 per kilo. Earlier this year, in May, the listing has also been corrected retroactively.
Vion does, however, cite several reasons why a reduction would be necessary. These include weak meat sales in Europe, and the fact that there is no room for additional sales on the global market due to unfavorable exchange rates in the form of the relatively strong euro. Nevertheless, the meat prices from DCA unchanged this week.
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It's striking that Vion also points to the negative impact of US trade tariffs on European pork. The recently concluded deal imposes a 15% tariff on European goods, including pork. Vion recently capitalized on this in light of the new Animal Welfare Act. Proposition 12 in California. Dutch sales to the US rose by more than 50% last year to around 10.000 tons. These volumes are likely largely handled by Vion, but overall, the volumes are small. Since this year, volumes have been under some pressure again, according to data (Harmonized System) from the World Customs Organization.
Wesfort is keeping its price unchanged this week, as are Compaxo and Van Rooi. In Germany, the VEZG price also remains unchanged at €1,95 per kilo.