Analysis Pigs
Pig market is in dire straits
The piglet market is going through a difficult period now that exports to Spain have taken a significant hit. As a result, the DCA BestPigletPrice has taken a significant step back this week.
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Normally, the piglet market picks up at this time of year, but this year things are a bit different. The outbreak of African swine fever (ASF) in Spain is having a major impact on the market. Preliminary export figures from the Netherlands Enterprise Agency (RVO) show that 16.736 piglets were exported to Spain last week, a 65% decrease compared to the previous week.
While domestic demand itself hasn't deteriorated, the drop in Spanish demand is overshadowing the entire market. All in all, sentiment is poor and uncertainty is high.
Extra slaughter piglets
A recovery in Spanish demand would be highly desirable, but the question is whether this will happen in the short term. Furthermore, the gaps around Christmas and New Year's are approaching, which poses an additional logistical challenge. Increasingly, surplus piglets are being slaughtered, but this will also be more difficult around the holidays.
Traders often opt for a substantial reduction. Based on the figures, the DCA BestPigletPrice drops by €4,50 to €36 per piglet. The German VEZG piglet price remains unchanged at €40 per piglet.
Click here for an explanation from DCA Market Intelligence on the listing.