GB cull sow prices “likely” to benefit from EU increases

EU sow prices recovered significantly during the latter half of 2016 from the historic lows experienced at the start of the year, according to AHDB Pork.

In January 2016, for example, cull sow prices in Germany reached their lowest level since 2011 before beginning a major recovery from June onwards. Similar trends were also seen in Denmark, France and the Netherlands.

“The price recovery was spearheaded by strong Chinese demand in a background of tightening supplies, which bolstered the finished pig price,” said AHDB Pork.

“However, there was some fluctuation in sow prices during the final quarter. This was likely influenced by the decline in EU finished pig prices last autumn, as competition form the US for the important Chinese market increased and there was some recovery in production levels.”

Over the past four weeks, meanwhile, the key European markets have all seen overall modest price increases in the region of a few cents, the further devaluation of the pound over this period accentuating these increases in terms of sterling.

“The German figure increased by over 4p to stand at £1.16/kg for week ended 22 January,” added AHDB Pork. “This suggests there has been healthy competition for sows and as such increases have also likely been seen in the GB cull sow price.”

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