Analysis Meat

Pig market pressure impacts piglet prices

Monday 6:15 pm - Wouter Baan

The significant price pressure on the pig market also has consequences for the piglet prices. The strong corrections that have entered Germany are spreading to the rest of Europe, including the Netherlands.

The trade in piglets is currently very, very difficult. At this time of the year, demand is always lukewarm, and now the pig market is also showing an extremely disappointing picture from the perspective of the primary producer. Vion reduces the pig price by €0.08 to €1.96 per kilo this week, after a price drop of €0.02 last week.

At first glance, this seems to be a relatively mild reduction. The first signals indicate that the other slaughterhouses (which reduced by €0.05 last Wednesday) are aiming for a dime less this week. Much will depend on how the German VEZG price will move. The situation is certainly not looking good, as is clear. This is also evident from the meat mutations by DCA, which are dropping significantly again this week. The simple explanation is that the meat supply exceeds the lagging demand.

BPP hard hit
The demand for free piglets is currently so weak that significant reductions are appropriate. Within the fixed linkages, it's still manageable, but there are hardly any buyers for free piglets. Not even abroad. Even the ever-optimistic traders recognize the challenging market situation.

Based on the data provided, the DCA BestPigletPrice drops by €5 to €60.50 per piglet. This is the largest reduction in over two years. The German VEZG price already dropped by €6 to €73.50 on Friday. Seasonally, the decline often continues for a while, so a bottom is not yet in sight.

Wouter Baan

Wouter Baan is the editor-in-chief of Farmerbusiness and a market specialist in dairy, pork, and meat at DCA Market Intelligence. He also tracks developments within the agribusiness sector and conducts interviews with CEOs and policymakers.

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