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GB sow prices believed to be at a seven-year low

PW ReportersBy PW ReportersMay 18, 20152 Mins Read
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Reports suggest that GB sow prices have fallen to their lowest level for over seven years, according to BPEX. That’s despite EU sow prices having shown some signs of stabilising since the start of this year, halting a previous downward price trend which dates from the summer of 2013.

The EU improvement follows some strengthening of the finished pig market, although sow prices have not improved to the same extent.

The impact of the euro/sterling exchange factor, however, means that while the EU market has achieved some euro-based stability, the conversion of values into sterling changes the picture quite sharply.

“In the key German market, the M1 sow price started the year at €1.05 per kg (76p/kg), before losing four cents during January,” said BPEX, adding that prices recovered again during February and were then broadly stable during March and April.

Prices in Denmark and the Netherlands have shown similar trends, albeit at lower levels, while French prices recovered strongly in February.

Turning to the GB market, however, BPEX added: “While no GB sow prices are currently being published by AHDB, the domestic price is normally driven by those in Germany, albeit at a discount, which has grown in recent years.

“Therefore, it is worth noting that, despite being stable in euro terms, the German price has fallen from 82p to 76p/kg in sterling terms with reports suggesting that GB prices have also fallen and are currently at their lowest level for over seven years.”

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