Processor failure to raise prices in light of strong demand risks industry exodus – TVC

Processors need to undergo a significant shift in attitude towards pig price, in the face of healthy retail demand, in order to avert an exodus of producers from the pig industry, Thames Valley Cambac has warned. 

In its latest weekly market update, TVC said the continued disruption of foreign travel and resulting increase in people enjoying staycations has further bolstered retail demand, with reports of bare shelves and queues outside butchers.

“Coupled to this, the start of summer sporting events and the chance of an end to lockdown, gives you all the ingredients for great trade,” it said.

“It is therefore disappointing that some processors continue to hide behind the excuse of poor carcase balance and slow exports to keep the price low. Unless there is a significant sea change in attitude, there will soon be an exodus from the industry.”

Supplies remained very tight last week and average weights continued to slide. Weekly contract
contributions were up again ranging from 1p to 3p. Fresh meat demand was off the scale with some orders
unfulfilled.- prices improved 2p to 3p. It was a similar story with cull sows with a healthy supply and prices 2p

In Europe, Germany and Denmark added 3 eurocent on the back of tighter supplies. Price quotes in
sterling were compromised by a weaker Euro that ended the week down 0.07p at 85.69p.

The weaner market continued to struggle for any batches outside contract arrangements as fatteners withdrew to core supplies only. This meant that some 7kgs weaners and some 30kg stores remained unplaced.

There were no weaner or store pig prices announced by the AHDB.

European Prices (p/kg.dwt) w/c 06/06/21   Movement on last week

GB SPP                                     152.79             + 1.05

Tribune Spot Bacon                156.56             + 1.13

European Av.                          143.50             + 0.98

Belgium                                   119.07             – 0.10

Denmark                                 137.10             + 2.16

France                                     159.04             + 0.14

Germany                                 134.53             + 2.46

Ireland                                     147.73             + 0.73

Holland                                    134.53             n/c

Spain                                       172.49             + 1.51

(Ref Weekly Tribune)

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Editor of LBM titles Pig World and Farm Business and group editor of Agronomist and Arable Farmer. National Pig Association's webmaster. Previously political editor at Farmers Guardian for many years and also worked Farmers Weekly. Occasional farming media pundit. Brought up on a Leicestershire farm, now work from a shed in the garden in Oxfordshire. Big fan of Leicester City and Leicester Tigers. Occasional cricketer.