VionS actions Drive Down Pig prices Across Europe
Slaughterhouse Vion is initiating a downward trend in pigโ 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 aโฃ challenging period for pig farmers.
While Vion โคdelayed releasingโ its new quotation until late Wednesday afternoon, its intention last week was to lower prices. Thisโ strategy isโ now โbeing mirrored throughout Western Europe, โฃwith meat buyers poised to benefit from reduced costs.
Despite a recent decrease in the Dutch slaughter number – 277,000 pigs in week โค45, 10,000 fewer than last year – the overall European โsupply is โconsidered excessive. Germany initially maintained its pig price, largely due to farmer โฃinfluence, but is now facing pressure to reduce prices by as much as 10 cents to avoid slaughterhouse reductions.Tรถnnies has warned of difficulties in processing โฃthe โcurrentโข volume of pigs offered.
The impact is widespread. Denmark is reducing prices by 10โค cents, and france has seen aโ 40-cent declineโฃ over โคthe past four months. Spain has fallen 45 cents in the same timeframe, and Italy dropped its price byโฃ 4 cents.
The Boerenvarkensprijs (Farmer Pig Price) had hoped to maintain itsโข current quotation until โafter the Sinterklaasโฃ holiday, but will now also fall by 6 cents to 1.87 euros,โค aligning with the broader Dutch decline.
This price drop is โdirectly affecting the piglet market. while โGermany anticipates a 5-euro decrease next โฃFriday and Spain has โincreased prices by 50โค cents, the Netherlands is postponingโฃ anyโข planned increase โคinโค piglet prices. An increase would likely face resistance, and is deemed illogical given the falling โprices for fattening pigs. The Boerenpiggenprijs remains at 41.50 euros, with future direction uncertain.
Industry observers fear a โ”snowball effect” and express hope that prices will stabilize, but the currentโฃ 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.
