AHDB aims to stimulate demand in lacklustre pig market
© Tim Scrivener The AHDB is stepping up its efforts to stimulate domestic and international demand following a period of flat prices in the pigmeat market.
On the domestic front, the levy board is relaunching its “British pork. But not as you know it” marketing campaign, “aiming to deepen engagement, especially among younger consumers, through dynamic, digital-first content”.
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Initially launched in February, the campaign (which includes a TV advert) is credited with stimulating good growth in pork mince sales, as consumers are encouraged to think of pigmeat as more than just a Sunday roast.
Internationally, the AHDB has also been busy, leading a three-day mission to Vietnam to help export businesses identify where the opportunities to trade are.
Susan Stewart, AHDB head of international trade development, said: “While the value of pigmeat exports, including offal, to Vietnam in the first half of this year was worth £68,324, we have identified it as a market with potential growth.
“We have plants listed to export to Vietnam and we are looking to grow that trade and diversify our offering across different markets in Southeast Asia.
“Gaining further insight into consumer trends and making connections is critical in helping pigmeat exports thrive.”
The AHDB estimates that pigmeat exports add £56/head in value, with a particular benefit in achieving carcass balance.
Stable prices
Pig prices in the UK have been stable over the summer, though have softened of late, with the GB Standard Pig Price (EU spec) quoted at 206.18p/kg deadweight in the week ended 27 September – down about 2p since mid-August.
“The pig market has been well-balanced over the summer, but two things may now be weighing it down,” said Andy McGowan of selling group United Pig Co-operative.
“The first is that we are now seeing a few more pigs coming into the supply chain as the trade casts an eye towards Christmas.
“But the bigger factor is the imposition of tariffs by the Chinese on EU pork exports, which range from 30% to 63% and are having a depressing effect on EU prices – perhaps knocking £10 or £20 off carcass values.
“This has widened the gap between the UK and EU and some in the food service sector will be turning towards imports. We are seeing more pressure on the wholesale market.”
The AHDB agrees, suggesting that while the drop in EU sales to China might create some opportunities for UK exporters, the greater risk is that displaced EU product will increase competition in other overseas markets, generating downward pressure on global prices.
Latest price information shows that, for the week ending 21 September, the average EU grade S price was 172.3p/kg deadweight, which was 2% down on the week and 5.4% down on the year.