Lack of ‘retail uptake and empathy’ stalls price recovery

The early stalling of the pig price recovery brings into question that retail sector’s commitment to the supply, according to Thames Valley Cambac.

Buoyed by the substantial lift in the SPP – up 3.2p to 141.71p, some of the majors continued the momentum, adding 5p to their contract contributions, TVC said. Morrisons-Woodheads is reported to have added 5p to its contribution price on Friday, while the other major processors barely moved.

“The market was somewhat taken aback by some processors standing on, apparently due to lack of retail uptake and empathy,” TVC said in its latest market update.

“This stalling, so early into the price recovery, is galling and brings into question retail commitment to the supply chain, especially as prices are still way below production costs.

“European markets seem to have little problem with their markets – France +13 eurocents, Denmark +9, Holland +8, and Germany +7, all driven by supply shortage. We can only look enviously at how reactive their markets are, and hope that our market realises that pig supply will not be as plentiful going forward. Europe helped give further impetus to our cull sow price with quotes up 8p.”

The weaner market remained limited to regular movements, with little to no interest outside these arrangements. The increasing feed costs are dampening any desire and fatteners are more likely to leave sheds empty at the moment, TVC said. There was insufficient data for the AHDB formulate any prices.

European Prices (p/kg.dwt) w/c 27/03/22   Movement on last week

SPP                                          141.71             + 3.20

Tribune Spot Bacon                159.15             + 4.87

European Av.                          142.00             + 4.78

Belgium                                   146.17             + 1.23

Denmark                                 112.06             + 7.15

France                                     162.59             + 10.01

Germany                                 160.09             + 4.83

Ireland                                     118.40             – 0.77

Holland                                    142.25             + 5.79

Spain                                       152.67             + 5.55

Ref Weekly Tribune

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Editor of LBM titles Pig World and Farm Business and group editor of Agronomist and Arable Farmer. National Pig Association's webmaster. Previously political editor at Farmers Guardian for many years and also worked Farmers Weekly. Occasional farming media pundit. Brought up on a Leicestershire farm, now work from a shed in the garden in Oxfordshire. Big fan of Leicester City and Leicester Tigers. Occasional cricketer.