Pig prices buoyed by EU rise
Rising EU pigmeat prices are starting to feed through to the GB market for week commencing 24 April.
Although prices have only moved ahead by 1-3p/kg the general sentiment is that there could be more on offer soon.
The DAPP also firmed up slightly and is now quoted at 100.52p. Better spot quotes should help to lift the DAPP in the weeks ahead.
Pigmeat prices still remain at a discount compared to beef and lamb, where producer prices have risen by up to 20% since the start of the year.
Most spot quotes for bacon on Friday (21 April) were in the 101–105p/kg range with cutters worth a 4-6p/kg premium.
But cull sow prices are easing due to ongoing movement restrictions in Europe and higher import tariffs to Russia.
Most quotes were in the 80–84p/kg range and larger sows have been netting returns of £140 and over.
The euro has remained almost static, opening on Monday (24 April) worth 69.1p. A weaker pound would help cull sow quotes and also put up the price of imports.
Demand for weaners remains firm, more due to a shortage of supplies than any real optimism for finished pig prices in July/August, with the Meat and Livestock Commission 30kg ex-farm average quoted at £34.04/head.
Better prices will be needed to help UK producers meet the additional costs imposed by DEFRA’s decision to ban the use of animal tallow as fuel in rendering plants.
Not only will this cause a sharp rise in the cost of pig offal disposal, but fallen stock collection costs could also increase by up to 25%.