Analysis Pigs
Slaughterhouses repair margins in price drop
Weeks in which the pig price suddenly drops 15 cents are historically rare. This week, the market took such a hit. Although the drop in distance was predictable, the correction is nevertheless hitting the sector hard. The hope is that the pain is now over, as slaughterhouses have better control over their margins.
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In late summer 2020, the German price fell by 20 cents when lockdowns resurfaced. While not as extreme this week, a 15-cent drop is still substantial and the second-largest correction in twenty years. Earlier this year, the price also fell by 15 cents when foot-and-mouth disease (FMD) was confirmed in Germany.
Rough corrections
So far, the German pig price has fallen five times in 2025, each time with a correction of 10 cents or more. In other words, if the German market falls, there's little stopping it. The Dutch market experiences fewer large fluctuations, but the current price drop is comparable overall. The rare premium paid for Dutch pigs this spring compared to Germany has now completely disappeared.
It's striking that Dutch slaughterhouses are slaughtering similar numbers as last year, despite the many people who have stopped slaughtering. The average slaughter weight is also close to that of 2024. Part of the relatively high supply is explained by a temporary increase in the supply of sows for slaughter. Slaughterhouses are managing well with the current supply, without experiencing oversupply. However, the willingness to slaughter remains limited by the persistently difficult meat sales market.
Margin recovery
After a difficult summer, slaughterhouse margins have recovered well since September. Dutch slaughterhouse prices fell unanimously by 30 cents during that period, while the raw material value of the carcass, according to the weekly changes in DCA pig parts, fell by approximately 17 cents per kilo. It should be noted, however, that pig prices rose faster than the raw material value this spring.
The expectation is that the market will calm down after these sharp corrections. Historically, the lead-up to Christmas sales has been relatively stable in terms of meat price movements.
Based on this week's developments, the DCA Exchange Price 2.0 still needs to be adjusted. The price for slaughtered pigs will drop by €0,10 to €1,62 per kilo, and the price for live pigs will drop by €0,08 to €1,25 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.