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EU Pig Prices: Quotations Inconsistent; Netherlands Closing Gap

EU - This week, the European slaughter pig market appears to be altogether inconsistent.
calendar icon 23 March 2017
clock icon 1 minute read

While some quotations continue to go up, others maintain to be on the level achieved. So, the Dutch, for instance, are closing the gap towards the German quotation.

Those countries still showing an unchanged quotation felt decelerated in prices by the signal given from Germany, where the quotation moves sideward after one week of discounted prices paid by Toennies and Vion and where the price level was kept on a corrected &Euro;1.516 per kg slaughter weight. Quotations as steady were also reported on from Denmark and from Austria. In France, the quotation went up marginally by a corrected 0.5 cents.

Surging quotations are being observed in Spain, Belgium, and in the Netherlands. As a consequence of its latest price increase by a corrected 3 cents and to almost the level of the corrected German price level of €1.516 per kg slaughter weight, the Dutch quotation is really eye-catching.

The question then arises of whether or not those slaughter companies which paid discounted prices in Germany bought their feedstock from the Netherlands at higher prices in order to be able to run the German slaughter belts at full capacity. Vion, for instance, paid discounted prices in Germany while the Vion quotation was increased by 2 cents in the Netherlands.

Trend for the German market:
At the beginning of the week, the domestic market was characterised by continuously brisk demand on the part of the slaughter companies for the limited quantities of live animals on offer. The marketers are in search of pigs just to be able to cover demand even roughly. Further prospects appear friendly.

(Source: ISN - Interessengemeinschaft der Schweinehalter Deutschlands)

1) corrected quotation: The official Quotations of the different countries are corrected, so that each quotation has the same base (conditions).
2) These quotations are based on the correction formulas applied since 01.08.2010.
base: 57 per cent lean-meat-percentage; farm-gate-price; 79 per cent killing-out-percentage, without value-added-tax

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