Northern European pig market is steadily improving

The pig market is clearly improving, slowly but surely. Both the prices of meat and livestock are increasing in Northern Europe. In Southern Europe, the outlook is less rosy. The pork market is clearly going through a better period. The average carcass price has increased by 2.86 cents per kilogram. This is the second significant increase in three weeks. Due to the lower prices, consumer prices for pork have decreased to the level of chicken meat. In some cases, the prices are even lower than this level. This has clearly had an impact on the market, as consumption has noticeably improved. Not only has the meat market gained upward momentum. With the recent increase, the German quotation stands at €1.55 per kilogram, the highest level since the turn of the year. Price increases during this time of year are not unusual. Nevertheless, the upward movement is proceeding less rapidly than hoped. Earlier this week, a double increase was still anticipated. According to slaughterhouses, the market for live pigs is currently picking up stronger than the sales of pork can accommodate. Vion and Tönnies follow the German price The increase is being followed in the market. Vion and Tönnies have both raised their prices by 10 cents. The price of Vion now stands at €1.31 per kilogram. Tönnies increases its price to €1.55. Remarkably, Danish Crown has not yet aligned with the higher prices. As a result, the Danish company clearly maintains the lowest prices. The company still pays €1.21 per kilogram to its farmers. In the Netherlands, the sector had anticipated a somewhat larger increase than materialised.The DCA exchange price predicted an increase of 8 cents per kilogram. In practice, however, slaughterhouses are still reluctant to adopt the higher level. In the Netherlands, supply is clearly declining. The number of slaughters decreased by 9.2% this week. In Germany, however, there is currently less talk of tightness. There, the number of slaughters increased by 0.7%. Last week also saw no clear decline, with 730,204 slaughtered pigs. There is as yet no difficulty in sourcing sufficient animals in Germany. However, market participants report that some pig farmers are holding back their supply in anticipation of further price increases. Slaughterhouses emphasize in turn that they can reduce the slaughter pace when margins come under further pressure. Southern Europe remains weak Meanwhile, the market in Southern Europe remains clearly weaker. In Italy, the pig price decreased again in week 9. The price dropped by 2 cents to €1.32 per kilogram. An important reason for this is a persistently strong supply. Add to this a higher price than in other markets, and you have a recipe for continued price pressure. In France, the price remains the same. Although there is a slight correction upwards in Spain, prices remain very low. The price stood at €1.05 per kilogram, an increase of 3.5 cents per kilogram. Although the market has clearly declined more sharply than the situation could actually justify, the situation remains critical. Spain remains dependent on a strong demand within the European Union, which exerts significant pressure on meat prices.