Plant throughput remains compromised amid EU price boost and soaring costs

Pig number allocations remain below what is required as problems within plants continue and slaughter weights continue to rise, and, while rising EU pig prices are boosting the UK market, soaring costs are adding to the industry’s problems, according to Thames Valley Cambac (TVC). 

“Factory throughputs continued to fall shy of planned numbers, and one major lost a whole day leading to many hundreds being rolled into this trading week,” TVC said in its latest market report.

“Production costs are a major worry, with many producers now exposed to vastly inflated feed prices. Prices continued to languish with little impetus.”

Demand was steady in the fresh meat market, although import quotes were a lot dearer due to the rapid
rise in European prices. This led to an ‘astonishing’ double digit rise in cull sows.

“The driver seems to be born of the Ukraine crisis and disruption to protein supplies – especially chicken, of which Ukraine was a major exporter,” TVC said.

The main movers were Belgium (+22 eurocents) and Germany +18, with Spain, the Netherlands and France all seeing good increases. The euro weakened against sterling to its lowest level in 5 and a half years to end the week down 1.35p at 82.39p.

There is little change in the weaner market with minimal demand outside contract arrangements. With little feed cover, the prospects of fatteners raising their heads above the parapet are slim, TVC added.

There was insufficient data for AHDB to calculate any weaner or store pig prices.

European Prices (p/kg.dwt) w/c 06/03/22   Movement on last week

GB SPP                         138.06                         + 0.57

Tribune Spot Bacon    137.97                         + 0.35

European Av.              116.33                         + 6.30

Belgium                       111.31                         + 16.68

Denmark                     91.95                           + 0.84

France                         132.97                         + 3.76

Germany                     123.58                         + 13.04

Ireland                         116.99                         – 1.92

Holland                        106.20                         + 7.30

Spain                           131.57 +                      + 4.37

Ref Weekly Tribune