The upward trend in EU pig prices that accelerated in May has fallen away as for the week ended 20 June, prices were back to €163.66/100kg – their lowest level in 4 weeks.
However, the EU average pig reference price still increased by nearly €3 over that period, until the €2 decline in the latest week. Prices remain significantly above year earlier levels, as has been the case since late May.
“The recent weakening in the market is primarily driven by demand-side factors. There are reports of subdued meat markets in several Member States, when there had been expectations of growth as foodservice restrictions ease,” commented AHDB analyst Bethan Wilkins.
“At the same time, export demand has been stalling, with sales to China now reported as lower than had been expected. Although live pig supplies are apparently not particularly large, it seems the limitations on demand at the moment mean numbers are more than ample to meet demand.”
Not all major EU producers have seen a falling market, but sharp falls recorded in Poland (-€6), Germany (-€5) and Holland (-€3) have brought down the average price despite other players saw stable or slightly rising prices.
“In sterling terms, the EU average price for week ended 20 June was about 140p/kg, more than 17p lower than the UK reference price,” Ms Wilkins added.