Vion Food Group

News Meat

Vion lowers pig price and pressure on piglet market

July 1, 2024 - Wouter Baan

That the pig prices this summer stagnate against expectations or even decrease at Vion, increases the pressure on the piglet price in the Netherlands. The long-established German VEZG piglet price takes a significant dive.

For sixteen weeks, the piglet price in Germany remained unchanged at €85, but this week the price drops back to €79.50 per pig. That is a substantial decrease. However, this is not unexpected. Piglet prices in other major European pig-producing countries have been declining for some time. In addition, in Germany, the premiums have been significantly adjusted in recent weeks, often preceding a decrease in prices.

Weak demand
In the Netherlands, the DCA BestPigletPrice also faces a significant correction this week. The price decreases by €3.50 to €65.50 per pig. The correction is mainly a result of the lagging expectations of pig prices, which currently show no signs of rising. Furthermore, there is a summer weakness in terms of demand. Both domestic and export markets are experiencing very subdued demand. Within the fixed linkages, things are still manageable, but hardly anyone is inquiring about free piglets.

Whether the piglet market has hit rock bottom due to this decline remains to be seen. Presumably, the eagerness of pig farmers to stock up will be stimulated again if piglet prices continue to drop. What doesn't help is that the pig price is starting to come under pressure. For example, Vion is reducing the weekly price by 2 cents to €2.04 per kilo this week. According to the meat company, there is a lack of demand in the meat market, which is evident across the entire carcass - especially the middle section.

Wouter Baan

Wouter Baan is the editor-in-chief of Farmerbusiness and a market specialist in dairy, pork, and meat at DCA Market Intelligence. He also tracks developments within the agribusiness sector and conducts interviews with CEOs and policymakers.