Market improves slightly, but lacklustre demand a cause for concern

The market improved slightly last week through better prices in places. However, other than the fresh meat market, driven by what seems to be a minor improvement in summer BBQ trade, generally demand was lacklustre with reduced kills, and some processors reporting very poor sales, according to Thames Valley Cambac.

Nonetheless, most producers moved the volume they needed to move, and weights continue to fall, TVC said in its latest market update.

The SPP average weight was below 90kg, for the first time since the middle of September 2021 – ‘another sign that we are nearing the short that has been talked about for months’, according to TVC.

The SPP continues to rise by 1.88p to 184.98p Some processors added to their input prices between 2p & 3p which should continue to give the SPP some momentum.

“The light relief seen in cereal prices over the last week or so hasn’t made much of a dent in the losses still been incurred by producers. Focus must remain on increasing the pig price even though this will potentially aggravate the reported lack of demand,” TVC said.

“This in the very least might facilitate processors taking their contracted numbers rather than cutting them which unfortunately has become an easy habit for them to follow over the last year.”

Weaner trade was minimal outside contract arrangements, with fatteners ‘few and far between’. There
was insufficient data for the AHDB formulate any prices.

“The main talking point this week was the reports of suspect FMD or possible SVD case in East Anglia but fortunately our worst fears have been put to rest with a negative result for both,” TVC said.

European and UK prices (p/kg) w/c 26/06/22          Movement on last week

Tribune Spot Bacon                192.70                         + 2.34

SPP                                          184.98                         + 1.88

European Av.                          157.39                         + 3.83

Belgium                                   145.90                         + 2.69

Denmark                                 127.97                         + 0.40

France                                     180.29                         + 5.87

Germany                                 158.68                         + 4.78

Ireland                                     162.97                         +3.94

Holland                                    144.10                         + 4.73

Spain                                       181.58                         + 3.91

(Ref Weekly Tribune)