EU pig prices increased every week throughout May, rising to an end of month total of €140.76 per 100 kg, according to AHDB pork.
Equivalent to £110.19/100kg at current conversion rates, this was the highest level recorded since October 2015 with much of the “price buoyancy” being led by the increasing demand from China.
“Export levels (to China) from the major EU producing states are now at record highs,” said AHDB Pork, adding that, encouragingly, the volume growth which is taking place hasn’t been at the expense of value, due to the current high Chinese pig price.
“This increasing demand from China has also helped to absorb the extra pork released onto the market, after being stored under the Private Storage Aid initiative in January.”
While both the EU and UK price has been improving over recent weeks, the EU price has done so at a greater rate. This has resulted in the UK price premium falling to 8.5p, the lowest level since September 2013.
“This could mean, however, that there is less demand for imported pork, potentially supporting the UK market further,” said AHDB Pork.