Pressure to stay on prices as supplies keep growing

UK pigmeat supplies look set for further growth according to the latest AHDB Pork forecasts, leading to the conclusion that the market will remain challenging for producers for some time to come.

“Recent production growth and low levels of sow slaughtering suggest a broadly stable breeding herd, rather than the declines recorded in recent Defra surveys,” said AHDB Pork, in a new review of price trends and market implications.

“Combined with continuing productivity improvements and a further modest rise in carcase weights, both slaughterings and production are forecast to continue rising at around the rate seen recently, for the rest of this year, before possibly slowing down slightly next year.”

The net result of such activity is that, even with growth forecast to slow in 2016, there will still be more pigmeat on the market next year than in the case currently.

“In the absence of a demand response, this could mean that the pig market will remain challenging for producers for some time to come,” said AHDB Pork.

“However, there are many factors which could affect the outlook for 2016, so prospects could still change, for better or worse.”

See AHBD Pork supply growth analysis

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