Pig prices continue to rise and are now well above year-ago levels, but remain well below cost of production.
In the week to 11 June, the EU deadweight average (DAPP) increased by 0.6p/kg, to 151.4p/kg – 4.6p/kg above the same week last year.
“Tight supplies throughout May are reported to have contributed to the rise in the DAPP during the month,” says a report by AHDB Meat Services. “The monthly average, at 148.76p/kg, was almost 5% higher than the average price in April and 2% higher than in the corresponding month a year ago.”
However, despite these price rises, farmers are still receiving well below production costs. “Estimates for June place the cost of production at 162p/kg. If prices were to remain at current levels producers will lose over £10 per pig next month.”
Farmgate prices increased by more than retail values between April and May, meaning producers received almost 41% of the final retail price – a rise of 1 percentage point over the month. Retail prices for boneless leg and minced pork both increased by 3% on the month, with fillet end leg up by 2%, but loin chops down by 2%.