Calm returns to pig market after sharp decline

After last week’s sharp decline, the pig market has calmed somewhat. In practice, however, little has changed, and the imbalance between supply and demand persists. This calm is not yet visible in the meat market. Since summer, the pig market has been under considerable pressure. In addition to Chinese import tariffs, a clear imbalance between supply and demand within the European Union remains the main reason that prices are under pressure. In particular, in Northern Europe, the losses were substantial. Over the past months, weak demand and ample supply in major producing countries such as Germany and Denmark have coincided. Until recently, the slaughter numbers in Germany were approximately at the same level as last year, although slightly fewer pigs were slaughtered in some weeks. However, the differences are marginal. Since the slaughter numbers fell below last year's level (starting from week 34), it has only decreased by 0.3%. This decline is more than compensated for by favorable weather for the growth of meat pigs. Additionally, the tightness in the Dutch market has somewhat recovered. The pressure is not yet off the pig market. After a brief stable phase, Dutch and German pig prices have taken a significant step downwards. The VEZG lowered its quotation last week by 15 cents to €1.70 per kilogram. As a result, the DCA Exchange price also fell by 10 cents, to €1.62 per kilogram. Thus, the German price has fallen by 19% since the peak of this summer. The Dutch price decreased even more, by 24.3%. This week seems to show a bit more calm in the market. The VEZG remained unchanged at a level of €1.70 per kilogram. In the past weeks, Dutch prices were generally the first to show a new downward movement. However, this was not the case this week: prices remained stable on the Dutch market across all major slaughterhouses. Meat prices continue to declineOn the meat market, the picture was different this week. The average carcass price began to decline by an average of 1.82 cents per kilogram. The decline is visible across almost the entire spectrum. In particular, the prices of hams fell sharply, with a decrease of 4.67 cents per kilogram. Additionally, the price of lean bellies decreased on average by 3.67 cents. The price of necks went down by 2.67 cents. Prices for ribs also fell by 2 cents, while chitterlings and bellies ended up 1 cent lower. It is notable that livers and bacon moved in the opposite direction: these prices increased by an average of 3.33 cents per kilogram.