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

Alistair DriverBy Alistair DriverJune 7, 20212 Mins Read
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Processors need to undergo a significant shift in attitude towards pig price, in the face of healthy retail demand, in order to avertĀ an exodus of producers from the pig industry, Thames Valley Cambac has warned.Ā 

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
stronger.

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 Ā  Movement on last week

GB SPP Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  152.79 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  + 1.05

Tribune Spot Bacon Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  156.56 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  + 1.13

European Av. Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  143.50 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  + 0.98

Belgium Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  119.07 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  – 0.10

Denmark Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  137.10 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  + 2.16

France Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  159.04 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  + 0.14

Germany Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  134.53 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  + 2.46

Ireland Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  147.73 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  + 0.73

Holland Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  134.53 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  n/c

Spain Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  172.49 Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  + 1.51

(Ref Weekly Tribune)

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Alistair Driver

Editor Pig World, group editor Agronomist and Arable Farmer and Farm Contractor. National Pig Association webmaster. Former political editor at Farmers Guardian. Occasional media pundit. Brought up on a Leicestershire farm. Works from a shed in his Oxfordshire garden.

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