Pig prices slide

SPOT PRICES for bacon pigs have lost further ground this week (commencing Aug 2) and are now quoted at 95-100p/kg – a drop of 6-7p/kg since the start of July.

The Deadweight Adjusted Pig Price (DAPP) is continuing to lose ground, slipping by 1.02p this week, to 106.76p/kg. 

The DAPP is expected to fall further over the next four to six weeks due to lower feed prices which are included in the cost of production element of the DAPP calculation.

European prices have also weakened for the second week running, with the mainland average equivalent to 95p/kg. 

However, traders hope that a relative shortage of pigs throughout the EU may help to put a firmer base into the market leading to a modest autumn recovery.

The lacklustre performance of the Euro, which opened on Aug 2 at 66.1p, continues to give imports a competitive edge with reports of supermarkets stocking large volumes of heavily discounted Dutch and Danish hams.

Despite falling finished pig prices the cull sow market remains relatively firm with GB export abattoirs quoting 75-78p/kg and numbers still on the tight side.

This compares with just 52-55p/kg one year ago.

Unless there are signs of an autumn finished pig price recovery some producers may be tempted to downsize their breeding herds while cull prices remain firm.