Overcapacity looms as pig slaughtering declines

By Peter Crichton

SLAUGHTER numbers are on the decline leading to overcapacity with more meat plant mergers and closures expected from both large and small operators.

End of year slaughter projections now stand at 220,000 head/ week. Signs of a difficult trading period this summer are emerging with falling interest in weaner pigs at the relatively high prices seen recently.

Spot 30kg weaners are now trading at less than £30/head and large scale buyers are digging in their heels at the £30 plus prices recently quoted.

The UK AESA has also slowed its recent its recent rate of increase with the 24 April figure up less than 1p to stand at 84.10p/kg deadweight.

Sow prices continue to reflect dull EU pigmeat prices with 50p/kg deadweight on offer. This translates to only 32p/kg liveweight or £64 for the average sow.

Trade sources are now finding it hard to see any significant improvement in pig prices until the last quarter of 1999 which may come too late for many breeders already in severe financial difficulties.