Market report: Weak pig prices set to continue

Pig prices across Europe have dropped sharply since the end of August and are likely to remain weak until next year, according to AHDB meat services.

Its latest market survey shows the EU reference price fell by 9% in the eight weeks to 24 October, adding pressure to finishers at a time of rising feed costs. Markets had been consistently weaker than last year due to higher slaughtering throughputs, and piglet prices had slumped as finishers looked to offset increased feed costs.

Prices in all the major pig producing nations dropped over the same period, although prices in Spain moved the most, down 18%, it said.

Values in The Netherlands and Germany decreased by 8% and 7%, respectively, with Denmark down by 6%. “The depreciation of sterling contributed to the UK pig reference price declining by 11% in euro terms, whereas the reduction in sterling was only 4%.”

The increased value of the euro against the US dollar was knocking trade with third countries, like Russia and Japan. With forecast higher slaughterings, and subdued demand, EU reference prices were likely to remain below €135/100kg (£117) until the second quarter of 2011.