Pig price decline slows
By Peter Crichton
THERE are signs of a modest turnaround in prices with most spot quotes slightly firmer towards the end of last week. Baconers are now being traded in the 48-55p bracket, up 4-6p on the previous week, and some meat buyers are predicting end-of-the-year prices at about 70p.
The rate of decline of the AESA has also slowed with the latest figure of 59.95p, less than 1p lower than a week earlier.
Demand for weaners has also improved marginally although the average UK spot prices is still only £10.45 for a 30kg pig that was worth £29.55 in 1997.
Signet quote the cost of production of a 30kg weaner at £29.10 for outdoor systems and £32.35 for indoors.
Breeder/feeder costs are stated to be 91.3p at bacon weight against net realisation prices unlikely to exceed 65p and averaging 60p.
These returns translate into a loss for weaner producers of between £19 and £22 per head and for breeder/feeders of almost exactly the same figure.
UK producers have pointed out that unless their returns can recover to at least match production costs they will face ruin. Meat traders have indicated that if our prices meet these levels we will be unable to compete abroad and will remain vulnerable to imports from cheaper and less welfare friendly sources.