Values hold at moderate levels

SPOT AND CONTRACT prices for pig supplies this week (w/c Oct 11) remain at moderate levels, barely covering production costs.

The GB Euro Deadweight Adjusted Pig Price (DAPP) rose by just 0.33p last week (w/e Oct 8), to 99.84p/kg dwt, with spot quotes for Euro Spec bacon pigs also steady at 98-102p. 

This compares with a cost of production of 97p/kg dwt for an average baconer in a “farrow to finish” unit, according to latest figures from the Meat and Livestock Commission.

With cull sow prices remaining high the National Pig Association is concerned that more producers are likely to leave the industry.

Export specification sows are currently trading at 84-86p/kg – equivalent to an average of £120/head.

Unless finished pig prices recover this autumn the temptation to clear herds and cash in on high cull values will remain strong and may lead to a further downsizing of the domestic pig industry.