Pig market shows signs of improvement

The pig price has taken a step up this week. The sales of pork have clearly improved after a weak period. At the same time, the supply in Northern Europe is decreasing. In Southern Europe, the price picture is mixed, with stabilization in France, ongoing pressure in Italy, and a slight price increase in Spain. As we have seen in recent weeks, the pork sales have significantly improved after an extremely weak period. Due to the drop in prices, pork has become just as cheap as or even cheaper than chicken for consumers. In the market, it is heard that this improved competitive position has benefited sales, resulting in parts prices gradually increasing over the past weeks. The effects of this are directly visible in the pig market. As the DCA auction price anticipated, pig prices increased by 5 cents this week. First of all, the VEZG quotation rose by 5 cents. This resulted in both Tönnies and all Dutch slaughterhouses raising their prices. For now, we have to wait and see if Danish Crown will also raise prices. Supply decreasesAnother important reason for the higher prices is a weaker supply. The supply in the pig market is shrinking week by week. The pig backlog that caused price pressure earlier this year has now been resolved. The slaughter volumes were stable at around 290,000 animals up to and including week 6. However, it is heard in the market that the number of slaughterings is decreasing. Presumably, we will see this figure decline in the coming weeks. Notably, the average slaughter weight has decreased. In total, the average weight dropped by 2.4 kilos in just one week to 98.9 kilos. Thus, the pigs in February are the lightest since 2018. This indicates that the supply is being sold quickly and that the market has been cleared in a short time. At the same time, some traders indicate that they do not always experience this tightness as strongly on an individual level. Spanish price increases slightlyIn Southern Europe, the upward path has certainly not been found everywhere yet. In France, the price has stabilized this week, and in Italy, the price is still under pressure. This is partly due to the relatively high level. The payout price in the country stands at €1.34 per kilo, clearly above the Northern European level, especially considering that it is a live price and not a slaughter price. In Spain, the price did increase, but the decline remains quite light at a level of 1.5 cents. The price in the country this week reached €1.015 per kilo.