EU cull sow prices continued to fall during January, following the downward trend in prices reported during the second half of 2014, according to BPEX.
The continued decline has largely been led by Germany, where sow meat is used in the processing of traditional products, leaving current prices just above a euro at 1.01 (76p) per kg.
“There is usually a seasonal pattern around the end of a year as processors increase production prior to Christmas and then reduce their capacity over the festive period,” said BPEX. “However, no recovery is apparent yet in the 2015 trade.
“The continued drop in price can, in part, be considered demand-driven, due to product not going to Russia, with the impact on finished pig prices adding to the direct effect on sow meat demand.”
In addition, with the euro weakening sharply in recent weeks, BPEX added that the GB sow price, which needs to follow trends of the EU market to remain competitive, is likely to be falling “even faster” in sterling terms.