Cull sow market collapses

TUMBLING EU pigmeat values are threatening to undermine any further recovery in UK pig prices, after losing 12% over the past eight weeks.

The cull sow market has been hit particularly hard and has lost a massive 30% in value over this period.

Although the GB Euro Deadweight Adjusted Pig Price has remained almost static at 106.17p, cheaper EU imports are expected to undercut the domestic market as the summer approaches.

UK spot bacon was traded for the week commencing April 25 between 107p and 110p, but sow values have crashed from 90p to 60–64p.

A key factor behind the EU price drop is a partial end to the eight month ban on imports of Brazilian pork to the valuable Russian market.

This ban was imposed in September because of FMD in Brazil and has allowed EU exporters to fill the gap since then.

Indifferent EU-wide demand for manufactured pigmeat products has also led to a build-up of stocks and a collapse in cull sow prices at a time of year when demand normally remains firm.

The relative weakness of the euro, which opened on April 25 at 68p, is also hitting the value of UK pigmeat exports and allowing more cheap imports to flow into a weak domestic market.

The latest MLC 30kg weaner average of £35.08/head ex farm is also expected to come under pressure unless finished pig prices rally.