EU pig prices appear to have begun to stabilise over the past month, following a 14-week decline towards the end of last year which left prices at their lowest for 10 years, according to AHDB Pork.
“In sterling terms, the average price has now risen from below 90p to 93.16p/kg (for the week ending January 10), mirroring the weakening of the pound against the euro,” said AHDB Pork.
In addition, although EU pork consumption appears to be continuing its decline, the rationalisation in the breeding sow herd in Germany, which is likely to be replicated in further member states, may be leading to a tightening of supplies in the EU market.
“The beginning of the price stabilisation could also be partially attributed to the Private Storage Aid (PSA) scheme implemented by the EU at the beginning of January,” said AHDB Pork. “Already applications totalling over 70,000 tonnes have been made, dominated by Spain, Germany, Netherlands and Denmark, with boned legs being the most prevalent cut.
“It remains to be seen whether the PSA scheme fully negates the post-Christmas price drop that is historically observed.”