Stoppers scheme lowers sow price, pig market holds steady

Not the pig prices, but the sow market demands attention this week with unexpectedly large price reductions. Due to the stoppers scheme in our country, the supply is so abundant that there is no way around it. Especially now that the meat processing industry will slow down in pace in the coming weeks.

With a reduction of €0.15 to €0.85 per kilo, the sow price of Tönnies, more or less the benchmark in Northwest Europe, drops to the lowest level since early 2022. Other sow prices have followed in a comparable pace. The reduction is a direct result of the ample supply of slaughter sows. This is largely due to Dutch breeders who are stopping and will empty out in the coming months.

Breeders empty out
With Christmas approaching, the supply for sow slaughterhouses is overwhelming. Slaughterhouses indicate little desire to freeze sow carcasses. The situation is likely to continue into early 2025. Traders mention that around the holidays, if they are lucky, they can still deliver a sparse load. It takes a while before the meat processing industry picks up pace in the new year. In addition, many Dutch breeders will continue to empty out in the coming months, keeping the supply ample. The significantly lower sow price is a setback for them, although the stoppers scheme still offers generous compensation.

DCA Beursprijs 2.0 remains stable
Also in the pork market, the supply is increasing as the holiday weeks approach. Unfortunately, this cannot be confirmed by slaughter figures that have not been updated by the RVO in recent weeks. The Christmas boost of extra demand for luxury meat cuts is now over, and the market is looking towards the new year. The supply exceeds the demand, resulting in a pig bottleneck. For now, this does not lead to price pressure, although it remains a realistic scenario for the new year.

For now, the DCA Beurprijs 2.0 continues to move sideways, just like in previous years. The price of slaughtered pigs will remain unchanged next week at €1.89 per kilo. The price of live pigs also remains unchanged at €1.48 per kilo.

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.

w.baan@farmerbusiness.com