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Comment

Danger

Peter CrichtonBy Peter CrichtonOctober 28, 20223 Mins Read
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Despite reports of pig numbers starting to dwindle at home and abroad, unfortunately due to a lethal combination of poor retail demand and additional costs pig prices both here and in Europe have generally remained at similar levels but are still well below cost of production. The latest SPP went up a modest 0.34p to stand at 200.43p this week.

The same pattern has been repeated in Europe with the latest influential German producer price remaining at €1.9 (equivalent to 164p/kg in real money), which continues to undercut domestic prices contributing to more imports continuing to flow in this direction.

UK weekly contribution prices remain stuck in the mud between 1.73p/kg and 190p/kg at a time when they should be levelling up not sitting still.

Spot bacon buyers had very little space for extra numbers with reports of prices being paid in the 185p – 190p/kg region for one off loads and lighter weights slightly ahead at 200p/kg.

Cull Sows

Although cull sow prices provide a useful barometer as far as EU pig meat values are concerned, these have eased back by 1p/kg due to fluctuations in the currency and being adversely affected due to a rise in the value of the Pound with the Euro down over the past seven days from 87.6p to 86.4p to the detriment of UK pig meat producers.

Export cull sow prices for next week are mainly between 65p – 70p/kg.

Weaners

Contract weaners are generally holding their value in line with the SPP, but the spot market is a much colder place to be in terms of demand with spot buyers few and far between and those who are operating are reflecting on very high COP levels and relatively low pig prices, which continue to push many producers deeper into the red – at a time when, to make matters worse, inflation is pushing up interest rates and making overdrafts even more expensive than they normally are.

Feed Market Trends

Cereal and protein prices still remain well out of step with reality as far as pig producers are concerned with the latest weekly UK spot ex farm feed wheat average price at £258.20/t.

On the futures market feed wheat for November traded at £272/t and for September 2023 at £262/t. Feed barley also reflected this trend with November contracts worth at £252/t and twelve months hence at £247/t.

Protein values are also doing no favours as far as producers are concerned with Hipro soya for November delivery at £510/t and for May – October 2023 at £455/t.

Rapemeal remains expensive at £362/t for November – January 2023 and at £367/t for February to April 2023.

And finally…

Yet another worry to add to the list with reports that recent port checks at Dover uncovered large volumes of illegally imported meat from ASF countries.

These included vehicles from Romania, Moldova, Ukraine and Polish sources and bearing in mind that there already been a significant number of outbreaks in many European countries including Germany, the stage could be set for ASF to continue heading in this direction.

Hopefully, further necessary action will be taken by the government to enforce inspections and to try to eliminate the ASF risk which could unfortunately be the final nail in a large number of coffins if it spreads to the UK. Hopefully, if stepped up biosecurity conditions are put in place pig producers should be able to keep this plague at bay – we shall see!

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Previous ArticleUSDA forecasts growth of global pork production but UK decline in 2023
Next Article Defra welcomes ‘positive’ industry response to pig contract consultation
Peter Crichton

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