VionS actions Drive Down Pig prices Across Europe
Slaughterhouse Vion is initiating a downward trend in pig prices, a move quickly followed by other Dutch slaughterhouses due to a perceived oversupply in the European market. This pressure is impacting producers across the continent, signaling a challenging period for pig farmers.
While Vion delayed releasing its new quotation until late Wednesday afternoon, its intention last week was to lower prices. This strategy is now being mirrored throughout Western Europe, with meat buyers poised to benefit from reduced costs.
Despite a recent decrease in the Dutch slaughter number – 277,000 pigs in week 45, 10,000 fewer than last year – the overall European supply is considered excessive. Germany initially maintained its pig price, largely due to farmer influence, but is now facing pressure to reduce prices by as much as 10 cents to avoid slaughterhouse reductions.Tönnies has warned of difficulties in processing the current volume of pigs offered.
The impact is widespread. Denmark is reducing prices by 10 cents, and france has seen a 40-cent decline over the past four months. Spain has fallen 45 cents in the same timeframe, and Italy dropped its price by 4 cents.
The Boerenvarkensprijs (Farmer Pig Price) had hoped to maintain its current quotation until after the Sinterklaas holiday, but will now also fall by 6 cents to 1.87 euros, aligning with the broader Dutch decline.
This price drop is directly affecting the piglet market. while Germany anticipates a 5-euro decrease next Friday and Spain has increased prices by 50 cents, the Netherlands is postponing any planned increase in piglet prices. An increase would likely face resistance, and is deemed illogical given the falling prices for fattening pigs. The Boerenpiggenprijs remains at 41.50 euros, with future direction uncertain.
Industry observers fear a ”snowball effect” and express hope that prices will stabilize, but the current market conditions suggest further declines are likely. The situation is described as the “eve of a bad period for the pig farmer,” a downturn that has already begun.