Pig prices have risen to their highest level since February 2015 with the EU-spec Standard Pig Price (SPP) up 5p/kg on the same time 12 months ago, according to AHDB Pork.
For the week ending 27 August the SPP rose by 1.29p to 137.30p/kg while, in the previous week, the Average Pig Price (APP) increased by 0.95p to 138.24p/kg.
The hike in APP means it is now the highest seen since February 2015 – up 1.63p/kg on the same period last year.
The increases reduced the gap between SPP and APP to 2.23p/kg.
Profitability is expected to be squeezed with the gradual increase in feed prices looking set to continue, despite increases in nationwide productivity.
The price rise was seen across both 30kg and 7kg category weaners. The 30kg weaners enjoyed their largest weekly increase since January 2015, rising by £2.36 to £47.88 a head.
For the 7kg weaner category, price rises were slightly smaller at £0.76 to £33.91 a head, £1.78 up on this time 12 months ago.
The AHDB said that the weakened pound continued to boost the domestic market and aid exports, placing more demand on tightening UK supplies.
AHDB Pork senior senior analyst Vikki Campbell said: “Despite a substantial market recovery, the legacy of the February lows is still in the minds of most producers.
“China has proved to be the golden goose for many, with more than half of UK exports going there.”
But she added: “With EU and domestic demand pretty flat, many will wait until more secure markets are established before making increases to herd size.”