Pig producers in Belgium and the Netherlands are banding together to create a sufficient volume of pigs between them to trade on the futures market operating in Frankfurt, Germany, according to Albert Vernooij, animal protein markets analyst for Netherlands-based Rabobank International.
The projects have been backed by local state authorities in support of their farmers. The development is a reaction to increased volatility of international prices for feed ingredients and livestock, commented Vernooij at an outlook conference held in London. Rabobank’s team of analysts believe that, on average, commodity prices will trend higher and remain more volatile, at least until the end of 2014.
Perhaps in the coming years, Vernooij added, Europe will have a US-style scenario in which slaughter pigs have eight or nine different ‘owners’ through futures market trading before they arrive at the abattoir.