Pig prices forecast to fall again
By Peter Crichton
PIG prices are forecast to fall again on the spot market at the end of this week. And the All-Average Pig Price (AAPP) is expected to follow this downward trend.
Auction market returns have already slipped as the week has progressed. The AAPP on April 22 stood at just 68.86p/kg liveweight, equivalent to 90.6p/kg deadweight. Spot bacon prices quoted for next week are likely to be closer to 80p than 90p.
Cull sow prices are still in the doldrums indicating low manufacturing pigmeat prices in the EU. Deadweight quotes are static at about 65p/kg, representing an average sow value of no more than £85 per head.
The weakening of the Pound this week has provided little relief to the home producer.
The latest Adjusted UK Spec price for the week ended 18 April is announced at 95.43p/kg. Industry sources predict this will be lower by some 2-4p next week.
But there could be some long faces on the Pig Fair stands this year. With deadweight prices of only 95p/kg, it looks like the state of the industry will be reflected in a low level of orders for equipment and farm services.
Last year, deadweight prices were at 117p/kg. The fall in spending power represents a reduction of £16.50 per pig or £68,000 for a moderately sized 20 sow farrow-to-finish operator.
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- Peter Crichton is a Suffolk-based pig farmer offering independent valuation and consultancy services to the UK pig industry