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Comment

Now is the Time to Say Goodbye

Peter CrichtonBy Peter CrichtonJune 25, 20212 Mins Read
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The SPP has continued its upward progress putting on a further 1.17p to stand at 156.99p, but the hand brake has definitely been applied in Europe.

Weekly contribution prices have in the main remained at stand on levels, although one of the more benevolent abattoirs went up by 2p to 163p with the remainder lagging behind and some as low as 146p.

Spot pig demand remains fickle with one off loads of pigs hard to sell, although regular spot sellers were generally 4p – 6p/kg above some of the lowest non-farm assured pigs which were in the 140p/kg region.

The value of the Euro has remained little changed trading at 85.9p today compared with 85.7p a week earlier.

As a result, demand for cull sows has remained static in the 60p – 63p/kg range.

Weaner prices continue to reflect a shortage of finisher space and coupled with high feed prices buyers have remained cautious until they have a better idea of which way the finished pig market will be heading in future weeks.

7kg RSPCA assured piglets are mainly trading between £35 – £37.50/head but Red Tractor piglets are in some cases £3 – £4/head below this.

Feed prices have fortunately eased a touch but are still too expensive to leave finishers with much of a margin if any.

Futures prices saw UK feed wheat trading at £196/t for July and £170/t for September. Spot ex farm feed wheat has averaged £191.4/t.

Barley remains slightly better value with deals agreed for August at £156/t.

Proteins are also easing in value with Hipro soya worth £348/t for July – October and rapemeal £220/t for August – January 2022.

And finally, on the basis that nothing lasts forever a number of pig producers are being forced to either retire from the industry of to become contract finishers because of the lack of any viable margins for independent breeders and finishers.

Those casualties who leave the industry have in many cases been running efficient and productive units but with COP levels at around 160p/kg, they have little chance of getting out of the red and will have to say goodbye and farewell to the industry.

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