European demand drives UK pork sector to new all-time high
© Tim Scrivener A jump in finished pig prices on the European continent, in particular in Germany, is feeding through into record high prices in the UK.
Pig marketing group Thames Valley Cambac said the German market is the major talking point at the moment, which rose in the past week by the UK equivalent of 11p/kg to average 195p/kg.
Typically, UK prices trade at about a 15p/kg premium to European prices, according to the firm.
See also: Strong demand for beef and pork predicted in 2023 – QMS
The EU-spec standard pig price rose 1.45p/kg on the previous week to a new high of 206.39p/kg in the week ending 11 February, according to the AHDB.
Independent pig consultant, Peter Crichton said despite the much better news in terms of prices, there is still a long way to go before all pig producers find themselves in the black, with production costs still often exceeding pigmeat values.
Weekly contribution prices are still lagging behind production costs, which in many cases are about 230p/kg.
“Unfortunately, despite the surge in EU pig prices, imports are still hitting these shores in significant volumes and undercutting domestic pigmeat prices,” he added.
UK breeding herd
Reports from industry suggest that as prices rise for breeding stock, some producers may take this as an opportunity to sell up and leave the sector, following a particularly tough two years.
Lizzie Wilson, chief executive of the National Pig Association, said:
“We lost an estimated 15% of the national breeding sow herd in the 12 months to June 2022 and although there are now signs of a return to profitability, the independent pig sector remains in an extremely fragile state.”