Tightening pig supplies in recent weeks have helped prices to begin to recover, according to BPEX, although that follows a decline in average pig prices in the EU in early May.
The strengthening of the pound against the euro is also continuing to have an impact on prices, in relative terms, between average EU and domestic UK values. As a result, the premium received for pigs in the UK increased to almost €40 per 100kg (28p/kg) in May, as the EU price fell while prices in the UK rose. This time last year the premium was the equivalent of £23.
“In the week ending May 24, the average price reported to the European Commission was just under €142 (£102) per 100kg, up €1.23 (89p) on the previous week, but almost €5 (£3.60) down on four weeks earlier,” said BPEX, adding that in sterling terms, prices fell 3.5p/kg compared to the level seen four weeks earlier.
“Prices fell as subdued demand, both domestically and for export, led processors to reduce levels purchased. However tightening supplies in recent weeks helped prices to begin to recover.”
Poland, Belgium and the Netherlands recorded the largest fall in prices among the major producers in May, while prices in the UK and Ireland saw marginal gains, in euro terms.