Pig prices increase on tight supplies

GB pig prices continued to rise in the week to 19 November, with the EU-spec all-pig price (APP) gaining 1.3p/kg to 152.8p/kg.

Tight supplies along with strong export demand due to weaker sterling were behind the positive trend, said a report by AHDB Pork.

However, GB pig production costs increased again in the third quarter of 2016 to average 135p/kg, added the report. 

See also: More prices and trends

The effect of this was limited because of the rising pig price, making producer margins positive for the first time since 2014.

UK pigmeat production continued to decline in October, with Defra putting UK pig slaughterings at 865,000 head, down 5% on October 2015.

This was the third consecutive month of falling throughputs, said the ADHB report. Sow slaughterings were also down by 11% to 18,900 head.

Overall UK pigmeat production was 5% lower than in October last year, at 73.5m tonnes, the sharpest year-on-year decline for any month since April 2009.

However, due to the positive market outlook, it was expected producers would maintain their breeding herds and supplies might increase next year.