No sign yet of pig meat retail price rise

Domestic pig producers are yet to see in increase in pig meat prices, despite retail prices showing some improvement.

The latest EU Deadweight Adjusted Pig Price (DAPP) has eased marginally to 108.46p, but UK spot bacon prices have fallen sharply.

Pig traders are reporting a major backlog of unsold spot pigs arising from the movement restrictions imposed after the 3rd August and 12th September FMD outbreaks.

Downward price pressure

Unless processors can handle larger numbers, there are no signs that the current backlog will be reduced putting further downward pressure on prices.

The meat export ban is also damaging the finished pig market as abattoirs can no longer export the “fifth quarter” for which there is little demand on the home market.

Cull sow slaughterings have also been reduced by an estimated 80% with producers forced into selling sows before the export ban is lifted, prices of little more than 30p/kg are available.

Herd size reduced

Weaner producers are facing the worst of all worlds. 

Not only are they having to cope with FMD movement restrictions, but have been hit by lack of fattening space due to the finished pig backlog and buyers’ reluctance to commit to new batches of weaners due to high feed prices and the uncertain outlook for finished pig production until exports resume.

Publication of the end of year UK Pig Census should establish further downward trends in the size of the UK herd which has fallen by almost 50% over the past ten years.