Analysis Meat
Turbulent pig market finds calmer waters
After a turbulent period with significant downgrades, the pig market seems to be able to relax a bit. However, price pressure remains latent. This is partly because the holiday period is approaching, leading to a decrease in meat consumption in Northwestern Europe.
The downgrade of the German pig price has so far remained 'limited' to €0.10 that was on the boards last week. This week, the quotation continued unchanged at €2.10 per kilo. As a result, the price reductions of five cents at the Dutch slaughterhouses were somewhat manageable. After a few restless weeks, it can be concluded that the price pressure seems to be fading into the background.
No influence
However, the market still feels fragile. Meat consumption is described as weak, mainly due to the rainy and rather cool weather. Additionally, the support of the European Championship in Germany is now a thing of the past as the tournament is almost over, although one can seriously doubt in retrospect whether this has influenced the meat markets at all. Just like the expectations about the national team's chances against England, these expectations seem to have been very opportunistic.
Decrease in demand due to holidays
The central region has also started its holidays, and the construction holiday is approaching. Consequently, the decrease in demand in the meat section is increasing week by week, as many people seek relaxation in often more southern European countries. The meat processing industry is also slowing down, perhaps even by two gears due to labor shortages being an issue. In short, the demand for pig carcasses is limited. However, there is also a relatively tight supply of pigs.
With approximately 270,000 pigs, the slaughter figure last week was between 2022 and 2023. Presumably, the supply will slowly increase again in the coming weeks, as is historically customary. There is no sign of growth deceleration with the current temperatures. In Germany, the slaughter figure seems to have reached its low point, as last week it climbed back to just above the 700,000 mark.
Price pressure temporarily behind us
As indicated, the worst price pressure seems to be behind us. However, it must be noted that the market horizon is very short. It is still difficult to estimate how the market will react once the holidays are over. The DCA Beursprijs 2.0 remains stable for now. The quotation for slaughtered pigs remains at €2.06 per kilo and the price of live pigs at €1.62 per kilo.
