Analysis Pigs & Pork
Lower pig supply provides foundation in market
With the late summer days slowly approaching, the pig market feels quite stable. A tight supply provides a solid foundation under the prices, but the upward path remains closed for now.
In some years, the pig market can surprise during the late summer days. Although it's not there yet on the calendar, it doesn't seem like there will be any upward movements coming in September. However, there can be mention of a tight pig supply in Northwest Europe, which at least makes the market foundation feel quite solid.
The demand for meat will need to increase to stimulate the market. Next week, beautiful sunny weather is expected, so perhaps this will boost meat consumption. This would be a welcome development for the market, as slaughterhouses and meat processors have been reporting disappointing sales throughout the year.
Slaughter weights down
The tight supply is also reflected in the slaughter figures. With 266,781 pigs, the slaughter figure is well below last year's level and also below the long-term average. The average slaughter weight also shows a clear downward trend. In weeks 31 and 32, the slaughter weight was even below 98 kilograms. This is the lowest level since the end of 2022, while pigs were record-heavy earlier this year. The declining slaughter weight is also related to the incentive policies of various Dutch slaughterhouses. They have recently adjusted their payment schedules accordingly.
Since this week, stability has returned to the market. Based on the data for the DCA Beursprijs 2.0, this trend will continue next week. The price for slaughtered pigs remains at €1.94 per kilogram. The price of live pigs remains at €1.53 per kilogram.
