A major setback for the pig price. You can safely call it that. The second reduction in a row from Vion Netherlands was not expected and that made it clear that the pig price in Germany was also going to fall.
At this price, no slaughterhouse wants to freeze a stock
The fact that this was with minus 10 cents is the second setback. Tönnies was still talking about minus 7 cents for the weekend, but apparently the meat market is still very disappointing and the drop of 10 cents was therefore inevitable.
The Dutch slaughterhouses do not want to slaughter everything that is offered at the moment. This is of course done to lower the price of the pigs, or in other words, the meat is a bit more difficult to sell and at this price no slaughterhouse wants to freeze a stock.
The story that the supply is large is certainly not true. Last year, in week 30, 290,000 pigs with a slaughter weight of 98 kilograms were slaughtered. This year the number was 25,000 pigs lower and was 265,000 animals with a weight of 98.20 kilograms. But they don’t want them all.
The fact that slaughterhouses are unwilling or unable to slaughter as much as possible naturally has to do with the holidays. The fact that the sales of meat are not at their maximum is certainly related to the current rainy weather conditions. This together gives the slaughterhouses the opportunity to lower the price and so it happened.
The drop of 10 cents in Germany was certainly not foreseen. Even on the Tuesday before, the hope was still expressed for an unchanged, but no one had taken into account a minus 10 cents.
A further reduction of 5 cents is taken into account for Wednesday
What will happen next Wednesday? That is the question. The slaughterhouses still have the option to reduce further, because the circumstances have not changed and for Germany it often applies: one reduction is two reductions. That is why a further reduction of 5 cents is taken into account for Wednesday.
The Teleporc exchange also gave no direction to the price, because none of the 1315 pigs offered were sold. Even the marketplace did not respond to the offer. So things look gloomy again for next week. The Farm Pig price has to fall further after last week’s reduction of 4 cents and lowers its quotation by 5 cents this week. We expect this to happen again next week.
Belgium is a follower country and, like Germany, also lowers its quotation by 10 cents. In France, the price drops by 6.5 cents. Denmark keeps the price unchanged. Spain drops the price by 1.8 cents, but in Italy the price even rises by 5.1 cents.
It is therefore still gloomy for the coming week, but we still see unchanged quotations before the end of the month. The reason for this is also simple. In a few weeks most holidays will be over and the processing industry will be asking for pigs again. The supply of pigs is not only much lower in the Netherlands, but that is also the case in many countries in Western Europe and as it seems now, the sun will come after the rain and the BBQ will be lit more often.
In Germany, piglets fell by 5 euros and in Spain the price fell by 4 euros
A fall in the pig price is of course disastrous for the piglet price. The supply is greater than a few weeks ago and not all piglets find a buyer. In Germany, the price of the piglets fell by 5 euros and in Spain the price fell by 4 euros. Together, both countries take in about 20 percent of the piglets born in the Netherlands, so it has a considerable effect on the quotations here in the Netherlands. The Boerenbiggenprijs drops its quotation by EUR 2.50, bringing it to EUR 81.50. We will see a further drop in piglet prices in the coming weeks.
2023-08-06 22:03:01
#Column #Heavy #setbacks #pig #price #Pigbusiness.nl #News #pig #farmers
