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EU pig prices soar on the back of tight supplies and strong demand

Alistair DriverBy Alistair DriverApril 12, 20172 Mins Read
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The average EU pig price has gained almost €9 over the past four weeks to stand at more than €33/100kg above the price of a year ago.

In the week ending April 2, the EU average pig reference price stood at €161.75/100kg, the highest quote since October 2016.

This upward price movements reflect tight supplies across Europe, following previous reductions in the breeding herd. Upcoming shortages of finished pigs had been suggested for some time by the skyrocketing EU weaner price, which has been rising for 21 consecutive weeks, according to AHDB Pork.

Compounding the lower supply levels is a seasonal increase in demand, partly attributed to the upcoming barbeque season. Anecdotal evidence suggests that the strong demand and short supply of pigs has spurred producers to bring pigs forward to slaughter earlier than usual, leading to a reduction in carcase weights, AHDB Pork analyst Bethan Wilkins said.

Furthermore, the reported lack of pig meat in cold stores throughout the EU is likely to reinforce demand for live pigs.

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Particularly strong price increases were seen in Germany, which rose over €12 during the previous four-week period to reach €169.14/100kg in week ending April 2. Over €5 of this growth occurred in the last week alone. Similar increases were recorded in the Polish and Dutch price over the past month, while French and Danish values increased more modestly by around €5.

The UK reference price also increased by over €2 during the previous four week period, reaching €175.79/100kg. Similar to the continent, the UK market has also been affected by tightening supplies. In sterling terms the increase was slightly greater, partly driven by further currency volatility.

The premium of the UK price over the EU average has fallen to the lowest level since November 2016.

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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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