Significant pig price jump founded on robust market
© Tim Scrivener Pig prices have made a significant step towards recovery with the largest weekly rise in five years, according to AHDB figures.
In the week ended 1 May, the GB EU-spec SPP jumped by 2.34p/kg to average 147.44p/kg.
The rise is the largest week-on-week price increase since August 2016, said AHDB Pork analyst Hannah Clarke.
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It was achieved despite increased supply, with throughput and carcass weights both rising.
Estimated clean pig slaughter at GB abattoirs totalled 177,700 head for the week, up 0.4% on the previous seven days and up 2% on the same week a year ago, Ms Clarke said.
The week also saw a return to rising carcass weights for the first time since mid-February.
Averages stood at 87.26kg – 130g heavier than the week before and up 2.10kg heavier year-on-year.
Sustainable upturn
Pig market analyst and industry commentator Peter Crichton said the rise in pig prices was a sustainable upturn, founded on increased demand and reducing supply in Europe.
The GB price has been undermined by an oversupply of cheap pigmeat in Germany after China banned exports due to concerns over African swine fever (ASF) cases in wild boar.
Covid-19 restrictions and processing plant closures added numbers to the backlog of pigs and prices plummeted.
The cheap pigmeat found its way to the UK via the government’s post-Brexit, food fast-tracking policy.
“However, the German backlog has largely cleared and there is no rollover of pigs waiting in the wings to hit us,” Mr Crichton said.
Improved domestic demand
Domestic demand is improving as shoppers look for alternatives to beef and lamb.
“There are also good prospects for demand providing the re-opening of the food service sector goes ahead as planned,” he said.
Globally, demand is also looking solid despite rising production in Canada and South American countries.
China’s difficulties with ASF have come back to the fore and reports that it was just 8% off self-sufficiency have been rejected.
Despite all of the pointers being in the right direction, Mr Crichton said there was still a long way before the price recovered.
The AHDB figures show prices remain 16.61p/kg down on the same time 12 months ago.
This, coupled with high feed costs due to the wheat price, meant pig farmers were still in the red and would continue to find the going tough for some time to come, he suggested.