GB pig price falls to £2/kg as margins tighten on farm
© Tim Scrivener After several buoyant years for the pork sector, falling pig prices are once again squeezing margins for producers.
Finished pig prices have slipped by almost 8p/kg in the past three months, and the Standard Pig Price (SPP) now sits roughly 6p/kg below the same week last year at 200.7p/kg.
The pork processing sector appears to be under growing strain, with abattoirs at full capacity and pigs being rolled over week-on-week.
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Matthew Banks, livestock marketing specialist at Meadow Quality, said many large processors were not taking all the pigs being offered, with most sites rolling some over.
Average carcass weights remain at the highest levels for several years, averaging 93.2kg in mid-November.
Industry concerns are mounting that with pig numbers on farm already starting to build and several shorter killing weeks over the Christmas period, the situation could worsen, leaving the sector with large backlogs similar to those seen in 2022.
Despite challenges at farm and processor level, demand for pork at retail has remained relatively firm.
Retail volumes were up by 1% and total spend increased by 2% over the past 12 months.
Exports have also performed relatively well. Jonathan Eckley, international trade development director at the AHDB, said: “UK pigmeat exports rose by 5.3% in volume terms compared with the same period last year, totalling around 157,000t.
“At the same time, pigmeat imports fell by 4% in volume and 7% in value, reflecting tighter availability across Europe and a focus on home-produced supply.”
The numbers
- 200.7p/kg Standard pig price for week ending 22 November
- 93.2kg Average carcass weight for finished pigs
- 5.3% Increase in volume of pigmeat exports in first half of 2025
Cost of production
The AHDB estimates the full economic cost of production for the third quarter of 2025 at 192p/kg deadweight, leaving a margin of 15p/kg deadweight for the period.
However, based on current finished prices, this margin would narrow to just 8p/kg.
Figures published by the global economic forum Interpig put GB pig production costs in 2024 at 192p/kg, well above the EU average of 169p/kg.
Profits up at Cranswick
Interim accounts for meat processor Cranswick showed profits lift by 10% to £105.1m during the first half of the 2025-26 financial year.
Total revenue at the firm increased to £1.47bn.
The report indicates that all three of Cranswick’s processing sites increased production volumes during the period.
It also said the major redevelopment of its Hull site, to increase capacity to 50,000 pigs a week, was progressing well and was due to be fully operational in 2027.
Chief executive Adam Couch said: “Demand for our core pork and poultry categories remains robust, underpinned by their relative affordability and consumer preference for natural protein as part of a healthy, balanced diet.
“We are well placed to maintain the positive momentum generated during the period into the second half of the financial year as we build towards our peak Christmas trading period.”