UK pig prices ahead of the rest

By Peter Crichton

A STUDY of pig prices throughout the EU shows that UK prices now occupy top spot ahead of the other six main pig production countries in Europe.

The latest UK AESA moved ahead by a further 2.44p/kg this week to stand at 96.56p/kg deadweight. This represents its highest level since March 1998 and further increases are forecast over the remainder of the month.

Prices have also moved ahead in Holland where the average price for a much heavier 87kg deadweight pig is 91p/kg. Germany, France and Denmark are all now in the 84-88p/kg bracket.

UK prices have been further boosted by the improvement in the value of the Euro. This has risen by 10% from recent lows to hit 63p and foreign exchange market forecasts are that the Euro will be supported at this level.

The effect of this is to make imports 10% dearer and to give UK pigmeat exporters a similar edge.

Although imports are still hitting the UK in large volumes, last week saw a reduction in the level of Dutch product which fell by 1.42%.

However, imports from Holland alone account for a massive 18% of their total output equivalent of 32,000 pigs/week.

Slaughter numbers in the UK remain tight and are forecast to be no more than 220,000 head on a weekly basis by the end of the year compared with over 300,000 head 2 years ago.

This slump in the numbers of live pigs follows heavy in-pig sow culling last autumn and, according to breeding companies, much lower levels of gilt replacement order.

PNDS and PMWS have also added to the scarcity of live pigs in the UK with East Anglia reporting a more lateral spread of the disease throughout the region.

The virus can lead to mortality of between 15-20% among grower and finishing pigs which on a national basis could lop a further 30,000 pigs or so off the weekly kill.

Spot prices have stalled in the last week with live market returns slipping to an average 78p/kg, equivalent to 105p deadweight.

Contract quotes are expected to be on a par with spot figures within the next two weeks.

Spot buyers are signalling buyer resistance beyond 100p/kg which is the area that prices may settle into for the rest of the month.

Demand for weaners has been lifted by better finished pig prices and the latest Farmers Weekly 30kg ex-farm average is 34.51.

Prices for 7kg pigs have also moved up and most are now being traded in the 21-23 range according to region and quality.

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