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Fall in EU pig price used by processors to halt price rises – TVC

Alistair DriverBy Alistair DriverMay 9, 20222 Mins Read
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A 15 eurocents fall in the German pig price has been used by some processors as a precursor to standing on with some weekly input prices, according to Thames Valley Cambac (TVC). 

“This is extremely frustrating and has become business changing for many producers as the current UK price remains significantly below the cost of production let alone yielding any margin,” TVC said in its latest weekly market update.

“The industry is left totally reliant on processors achieving price increases from end users to support much-needed increased returns, or the 12 -15% reduction in the UK herd size already experienced will at least double.

“One of the issues with this is that the processor is not feeling the reductions yet, as the backlog that has accumulated over the last 10 months is still being cleared, although it is believed current production will undoubtedly result in some processors being short later in the year, which will only be exacerbated further unless they can facilitate improved returns for processors very quickly now.”

Contract prices increased due in part, to a stronger SPP, up 1.91p to 166.83, which is the highest the SPP ever. Other market fundamentals moved up as well, giving improved Q prices. The fresh meat market remained buoyant and prices generally appreciated 2p – 3p.

But the sow market was dire, with prices falling by 11p. The exporters limited numbers somewhat as continental demand was described as weak, TVC said.

There was a touch more life in the weaner market with ‘an odd very brave fattener coming to the market’. Prices achieved were hard won but nowhere near cost of production. There was insufficient data for AHDB to calculate any prices.

European Prices (p/kg.dwt) w/c 08/05/22   Movement on last week

GB SPP                                     166.83             + 1.91

Tribune Spot Bacon                180.36             + 1.31

European Av.                          150.30             + 0.39

Belgium                                   137.86             – 4.87

Denmark                                 125.44             + 2.51

France                                     174.49             + 4.16

Germany                                 154.11             – 9.51

Ireland                                     145.55             + 2.91

Holland                                    140.46             + 2.86

Spain                                       171.24             + 4.03

(Ref: Weekly Tribune)

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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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