Pig industry out of the terminal ward?

Friday, 30 January, 1998

By Peter Crichton

THE slide in pig prices that began last June has at last shown signs of levelling out.

Recent spot quotations now exceed the All-Average Pig Price for the first time in seven months. Flat rate baconers were quoted at up to 90p/kg deadweight last Friday, compared with the current adjusted UK specification price of 87.77p/kg.

But even at these levels producers are still 13p/kg down on the latest “break-even” figures of 103p/kg deadweight quoted by Signet consultants.

Weaner producers continue to operate at a significant loss. Production costs for outdoor weaners are quoted at £32.13/head. Indoor herds are quoted at almost £1/head cheaper.

These figures compare with an average ex-farm price of £26.67/head for spot- and formula-weaners in December, representing a loss of around £5 per 30kg pig produced.

Cull sow prices are also on the move. Recent quotations have hovered around 65p/kg deadweight and further improvements could be on the cards.

European sources are yet to report any noticeable price gains due to recent swine fever outbreaks on the Continent. They do warn, however, of a further influx of heavy pigs currently held up in “standstill zones” in Holland which are likely to hit the market in two weeks. When this happens, domestic sow and heavy pig prices could suffer.

Domestic prices have so far been boosted by a slight reduction in the number of pigs available. This is possibly due to reduced fertility last summer and the recent cold weather which has suppressed growth rates.

But with the weather in February notoriously unpredictable, it remains to be seen whether the levelling out of pig prices will herald a modest recovery across the sector. Only time will tell.