EU drags pig price down

THE EFFECTS of sharply falling EU pigmeat values are starting to be felt on the GB market.

The EU mainland deadweight producer average price has now fallen to the equivalent of 87p/kg which is 10p/kg (£8/pig) down over the past three months.

As a result, most GB spot baconer quotes for supplies the week commencing 18 April were at “stand on” or slightly easier levels.

Spot bacon was generally traded in a 107–110p/kg range with lighter weights worth 3–5p/kg more than this.

A weakening euro which opened on April 18 at 68.2p is also allowing more competitive imports to undercut the UK market.

Though live UK pigs remain in short supply, processors do not feel the shortage will help the domestic market while cheap alternative imports are available.

The GB Euro Deadweight Adjusted Pig Price rose marginally this week to 106.04p, but traders say future price movements are likely to be down.

The cull sow market provides the best indicator of falling EU pigmeat values, and has slumped 20p/kg (£35/sow) over the past month, with further falls likely.

Weaner prices are also expected to slip from the latest Meat and Livestock Commission 30kg average of £35.08/head ex-farm.

The only positive news for pig producers is the low spot feed wheat price which has remained static on £64.80/t ex-farm, compared with £95.90/t a year ago.

Forward feed cereal quotes are also echoing a relatively static trend for the remainder of the year, with LIFFE wheat futures quoted at no more than £68/t.