Pig shortage shows in prices

By Peter Crichton

THE shortage of pig numbers is beginning to be felt in the UK pig market.

Deadweight quote remain firm, and some buyers are still looking for extra pigs to fulfil their order books.

This is in spite of a “short” week due to the 28 May Bank Holiday.

The GB AESA moved up by .05p to 96.89p/kg deadweight.

Spot baconer quotes have generally fallen into the 98-102p/kg range, with lighter pigs boosted by barbeque demand and enjoying a premium of up to 112p/kg deadweight.

Weaner prices are continuing to reflect the shortage of numbers available and the difficulties in moving pigs in certain parts of the country.

The latest 7kg quotes have been as high as 25/head and top quality bunches of 30kg tail-docked weaners are being traded 36-40/head.

One other small ray of hope is the recent reduction in offal disposal costs.

Renderers have dropped their prices from around 90/t to 60/t and producers are hoping that this will be reflected in lower abattoir deductions for waste removal.

An average bacon pig will yield around 6kg of offal for disposal which, at 60 to a tonne, costs around 36p per pig.

This compares with over 50p per pig before the price reduction became effective.

Another sign of the impending pig shortage is that several large-scale finishers are looking to tie up two- and three-year weaner supply contracts with breeders with “floor and ceiling” price ranges.

The latest of these has included a base price for 7kg of 17/head and a maximum figure of 32/head, which will provide most of the efficient 7kg producers with an insurance policy against future price slumps.

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

Farm e-Business Survey. Click here to enter and win 100 Amazon vouchers