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UK pigmeat prospects boosted by weakening pound

PW ReportersBy PW ReportersApril 7, 20161 Min Read
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The relative weakness of sterling against the euro is good news for UK pig producers, according to AHDB Pork.

Pointing out that last Friday the pound hit its lowest level against the euro for 18 months, AHDB Pork has highlighted the positives of this movement for the pigmeat sector, to the point of suggesting a potential increase in demand for UK exports.

“The weaker pound against the euro will make UK pigmeat more competitive in euro-priced markets,” said AHDB Pork.

Last year, the strength of the pound against the euro drove UK pig prices down and sterling hit a near eight-year high against the euro at £1=€1.44. As a result, the gap between the EU pig price and the UK pig price averaged 29p/kg in 2015.

Today, the combined impact of the weaker pound and the fact that UK pig prices have been slipping since the start of 2016, sees the EU/UK price gap sitting at under 10p/kg.

“This all means that although pig prices are currently close to multi-year lows,” said AHDB Pork, “the weaker sterling in comparison to last year could give UK pig producers a bit of hope that prices may strengthen in the coming months.”

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