EU pig prices buck seasonal trend

EU pig reference prices have bucked their normal seasonal trend by remaining relatively stable between mid-December and the end of February.

Although prices normally fall sharply after Christmas before recovering during February, average values had remained roughly unchanged at about €170/100kg, said a report by BPEX. “Tight supplies helped to prevent a sharper fall in prices, but subdued demand, particularly from export markets, are keeping a lid on prices.”

Although average values were above last year, the gap had narrowed from more than €20/100kg in mid-January to about €10/100kg at the end of February. Unfortunately, UK markets had also dropped during that period, with the weakening pound exacerbating the fall in euro terms. “The gap between the UK price and the EU average fell from about €20/100kg at the turn of the year to just €2 at the end of February,” said the report. “When the prices get as close as this, UK prices usually start increasing.”

Higher domestic retail prices had curbed retail spending, with sales down by nearly 6% in volume terms in the 12 weeks to 17 February, according to analyst Kantar Worldpanel. Overall spend was relatively unchanged at £227m.

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