Decline in German pig price puts market under pressure again

The pressure on the European market has further increased with a substantial reduction in the German pig price. The effects of the price drop are also significant in the Netherlands. This means that the high prices of the past three years are, for now, a thing of the past. Last week, after a sharp decline in the Northern European pig prices, there was a brief moment of calm in the pig market. The prices in both the Netherlands and Germany remained roughly stable, with only a decrease in the pig price from Vion. However, this week that trend has been firmly broken by a significant drop in the German quotation. In recent days, there has been a lot of speculation about a strong decline in the VEZG quotation. The news is now confirmed, and the reduction is substantial. The VEZG has lowered the price by no less than 15 cents, from €1.85 to €1.70 per kilogram. This is a decrease of 8.1% in just one week. The German quotation now lies just below the DCA Exchange price. The difference from last week is 2 cents. The lower price is still primarily the result of a decrease in the export of by-products to China, since that country has imposed a high import tariff on European pork. In addition, the market is under pressure due to a large supply of slaughter pigs and weak consumer demand within Europe. With the recent drop, the German price reaches its lowest level since the outbreak of the war in Ukraine. Since the beginning of that war, the market has detached itself from long-term price levels, with record prices quickly following each other. In the summer of 2023, the market peaked at €2.50 per kilogram. Since then, weak European demand and excessively high European prices for the world market have caused quotations to fall significantly again. Despite high expectations, this price level has proven unattainable in 2024. Since mid-2025, approximately 40 cents of the price has disappeared. The Netherlands further reduces Danish Crown has not yet responded to the new situation in Germany, and a new quotation from the company is not yet known. In the Netherlands, Vion is lowering the price by 5 cents. This is less than other slaughterhouses because Vion implemented a reduction last week already. Westfort, Van Rooi, and Compaxo are reducing their asking prices by 10 cents. This brings the situation largely back in line with that of the past few weeks. On average, the carcass price fell by 2 cents. The lower ham price is particularly putting pressure on the pig market; the price of this part dropped by 6.67 cents. Bellies and lean loins became an average of 0.67 cents cheaper.