Relief at stable pig market

PIG PRODUCERS are relieved that prices have been holding at a time of year when values normally come under pressure.

Although the GB Euro Deadweight Adjusted Pig Price (DAPP) eased by 0.54p for the week ending July 8, to 107.48p/kg, this was significantly higher than the Jan-Jun six-month average of 105.2p/kg.

Traders attribute most of the stability within the GB market to much firmer EU prices.

The EU mainland pig price is now touching 100p/kg compared with 85p one year ago.

At the same time the value of the Euro has remained relatively stable and opened on Thurs, July 19 at 66.6p.

GB prices have also held due to falling pig numbers being processed by domestic abattoirs.

The latest Meat and Livestock Commission (MLC) slaughter statistics published for June stand at just 137,250.

The price gap between farm gate and retail has also shrunk, indicating firmer live farm pig prices over the past six months.

At the start of the year the bacon farm / retail spread quoted by the MLC was 340%. This has now slipped to 334%.

With a 20% reduction in wheat and soya prices over the past three months and easier quotes on the future markets producer margins should be positive for the second half of 2004.