Firmer prices ahead for pig meat

Pig meat spot prices have maintained recent levels with signs of slightly firmer prices ahead, despite deadweight adjusted pig prices taking a downward step to 105.72p (week ended 17 February).

Spot bacon quotes were generally between 100p, with some abattoirs looking for extra numbers and prepared to pay between 101 – 103p/kg.

Cheap imports, readily available on meat markets at 106p (ex head), are still undercutting the UK market by up to 5% in value.

Reports from Europe of slightly improving pig and cull sow prices might help to take some of these very cheap pigs out of the system soon.

The cull sow market has always been a ready barometer of forward prices and quotes today generally moved up by 1 – 2p with prices around 70p available for most outlets on a flat rate basis.

The rising value of the Euro, which opened on week commencing 19 February worth 67.2p (65.8p this time last week) will also help to improve cull sow values and put up the cost of imports.

The weaner market still remains under pressure mainly due to concerns over rising feed prices with the MLC ex farm 30kg average quoted at £33.58/head which in many cases is below cost of production.

There will need to be a significant improvement in finished pig prices in the months ahead to keep up with much higher feed costs due to rising demand from bio-fuel users. 

Feed wheat is currently trading at circa £90/t (ex farm) compared with £68/t a year ago.