Looks good for pig price as export trade restarts
Looks good for pig price as export trade restarts
By Philip Clarke
BETTER pig prices are on the way after the resumption of export business this week.
While actual shipments from counties which have had no cases of foot-and-mouth may not resume until Monday (Oct 22), Continental buyers were busy signing contracts at the ANUGA food fair in Cologne, Germany.
Leading Italian import agent, Stefano Benassi of Interfleisch, said he had already booked his first 20t container of Scottish forequarters to roll on Oct 23, and anticipated building up to 200-300t a week quite quickly.
His business used to ship up to 12,000t a year of fores and bellies to Italian processors, and in the UKs absence he had had to turn to French and Dutch suppliers. They had not offered the same quality, he told FW.
Portuguese importer, Jose Costa of Corod, who has imported British shoulders and bellies for 10 years, also complained he had not been able to get the same quality from other countries.
"Our UK suppliers give us the homogeneous cuts we want with not too much fat cover on the bellies," he said. He wanted to resume his year-round business for 100t a week from three principal British suppliers as soon as possible.
Spanish buyer, Mario Martinez of Suministros Medina, was pleased to learn at the food show that UK pork was back and was actively looking to resume his 20t a week trade in fore hocks for the Madrid market.
But while quality is clearly important, the strong demand for British pork also reflects its low price and the fact most of it goes for manufacturing, where it loses its national identity.
Continental values have been running at about a 25% premium to British prices for much of the year, said Meat and Livestock Commission strategy director, Bob Bansback. "It has been so frustrating that, at a time when the pig cycle has been peaking elsewhere, our rates have dropped to just 92-93p/kg dw."
He estimated that prices would have been over 100p/kg this year, had the UK been able to conduct its normal export business for over 200,000t of pork. In 2000 that trade was worth about £141m.
Ex-farm prices would now start to rise with the resumption of exports, Mr Bansback predicted. But this recovery would be limited by an impending downturn in the pig cycle. Denmark was still expanding its pig herd, which would put pressure on the EU market next year, while world values would feel the effect of a growing pig herd in Canada.
The overall effect on UK producer values would depend on the £:k exchange rate, though Mr Bansback expected to see a net price improvement. *