Pig prices slip below 100p

By Peter Crichton

PIG prices this week have remained on a plateau with a slight downward tilt.

The GB AESA closed at below 100p/kg for the first time since last June to stand at 99.15p/kg.

Spot and live auction prices have also had an easier time with lighter weights trading between 100p and 110p/kg.

An over supply of heavy pigs held back over the Christmas and New Year period are proving harder to shift, trading between 95-100p/kg.

The culled sow market has, however, staged a partial recovery with prices up between 5-7p/kg and next weeks export specification quotes between 55-58p/kg.

Although the BSE crisis in Germany is still affecting demand for sow meat, other markets have been found in eastern Europe which has taken the pressure off supplies.

At the same time UK producers have been very reluctant to sell at recent low levels which has shortened supplies.

Demand for weaners remains very strong due to the continuing fall in the numbers available and the ravages of PDNS and PMWS, which continue to hit output with mortality over 30% in some cases.

30kg weaners are currently being traded between 36-42/head according to specification and quality and the FARMERS WEEKLY ex-farm average now stands at 37.65.

With the Euro remaining reasonably firm at just over 63p, prices in the UK are now virtually on a par with a number of other major EU pig production countries which may to some extent help stem the flow of imports.

Meat traders believe that once supply and demand in the UK is back in balance pig prices should stabilise during February and start to improve in March and April.

This view is supported by the Dutch AEX futures prices which show firm quotes between 93-98p/kg for the February to May period.

• Peter Crichton is a Suffolk-based pig farmer offering independent valuation and consultancy services to the UK pig industry