Pig price falls below £2/kg after biggest drop in three months

Pig prices have fallen below £2/kg for the first time since mid-September, according to AHDB figures.

Prices for EU-spec SPP stood at 199.74p/kg in the week ending 3 December, down 0.62p/kg on the previous seven days and 0.98p/kg below the record high of 200.72/kg in November.

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The drop was the largest in three months, bucking the trend so far this autumn of only slight weekly adjustments.

AHDB analyst Freya Shuttleworth pointed to volatility in volumes at abattoirs which had caused disruption in values.

The estimated slaughter during the four-week period of November totalled 736,900 head, Ms Shuttleworth said.

This is the highest four-weekly kill number since the height of the backlog in March, showing increased supply for Christmas demand, she explained.

Disappointment

The National Pig Association (NPA) described the latest pig price as a disappointment.

However, it said the drop was of little surprise on the back of a series of reductions in processor weekly contribution prices.

Woodheads-Morrisons has come down by 10p/kg over the past few weeks, while Karro’s contribution price of 167p/kg is now around 33p below the average pig price, the NPA said.

The organisation added the UK price remained under pressure from significantly cheaper EU imports, despite increased values last week in key producers Germany, Belgium and the Netherlands.

Although prices appear to be rising on the Continent, the average EU reference lags a week behind UK figures with 172.08p/kg recorded for the week ended 27 November.

This is 30p/kg below the UK equivalent attracting GB buyers and undermining British pig producer prices, the NPA said.