Sluggish pig trade after Xmas splurge
Sluggish pig trade after Xmas splurge
By James Garner
PIG prices have met with all manner of problems in January, not least a pre-Christmas credit-fuelled shopping boom, which has left many shoppers penniless until pay day.
Its been a long month too, with most consumers having to wait at least five weeks between wage packets.
This has had a knock-on effect on demand for pigmeat, which all commentators agree has been extremely flat.
Ray Pilgrim, managing director of Norfolk-based EE Pilgrim and Sons, told farmers weekly that business was desperately slow.
"Its been very lacklustre. I can only think it is a hangover from Christmas," he says. "Theres a lack of momentum and direction in the market and demand is very fragmented and fragile."
Pilgrims, now owned by Cheale Meats, deals a lot in the sow market and this has taken a particular bashing since Germany announced problems with mad cow disease in its cattle herd.
Sow demand collapsed in the UK and liveweight prices dipped below 30p/kg a few weeks ago, but have picked up a bit recently, trading at 34p/kg on Monday, up 4p on the week.
Pilgrims are still not killing pigs five days a week and it may be through to end of February before things get back to normal, says Mr Pilgrim.
Richard Doel, marketing manager for Anglia Quality Meats in Royston, Herts, adds that the collapse in demand for manufacturing pork in Germany has hit the rest of the pig market.
"Shoulders and manufacturing pork from fat pigs have suffered, knocking finished prices," he says. "And there is a lot of joint beef and pork meat products in the traditional German food market."
Maltons move to surrender pig processing at its Middlesbrough factory has reduced the firms throughput of British pigs by 10,000 since Christmas.
Industry sources suggest that some of these pigs have been replaced with imports from the companys factory in Ireland, leaving extra pigs available on the UK market.
Supply is just exceeding demand, says independent consultant Peter Crichton, who says the Eurospec average price is now about 96p-97p/kg.
This is the first time it has been below 100p/kg for more than a week since the beginning of July last year.
Mr Doel argues that it is reasonable to be optimistic on mid to long-term market prospects, based on fewer pig numbers in UK and Europe.
Prices are also improving on the Continent, says Mr Crichton. "Dutch futures are fairly strong and EU prices are higher. This gives me some confidence."
Ironically, the spread of the debilitating pig disease, PDNS is cutting numbers when the market is over supplied, infecting as many as 60% of pigs in some East Anglian herds.
Although no-one would welcome the disease, prices would be under even more pressure if it was not around, he says. *
PORKMARKET
• Over-supply.
• Consumers hard-up.
• Imports up.