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Poor demand continues to frustrate pork market

Alistair DriverBy Alistair DriverJuly 11, 20223 Mins Read
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Poor demand for pork and low prices in Europe are continuing to hold back the UK pork market, according to Thames Valley Cambac.

Today, the Tribune bacon price edged towards £2/kg, hitting 196.5p/kg, while the SPP was up another 2.49p to 188.9p/kg last week  – a new record, having risen more than 50p since mid-February and 30p ahead of a year ago – things look rosier.

However, the reality is that, even though £2/kg is now almost in sight, the average price producers are receiving remains well short of average costs, particularly as it takes time for any reductions in feed ingredient prices to translate into feed costs. The June average cost of 244p/kg, calculated by AHDB, was 4p on the May figure.

In its latest weekly market update, TVC said: “While supply continues to tighten, demand faltered again with poor sales being blamed. Although we are in a traditionally quieter sales period, it is still frustrating that demand is seemingly so poor.

“In reality, some of the blame can be pointed at the low prices in Europe putting a brake on our trade by its continual source of cheap imports. Indeed, many of our fresh meat customers are experiencing this, and it is undercutting our ability to push prices.

“Most of these imports are entering the country unchecked, and considering the latest spread of ASF in Germany, we echo the calls by NPA and others that the government must improve our border controls.”

In contrast to the continued rise of the SPP, cull sows eased back a penny however due to currency. European prices were generally stand on except for France that added another 5 eurocents, but prices quotes in sterling were lower however, due to the fall in currency.

There was minimal weaner supply outside regular arrangements, and fatteners continued to be very wary due to uncertainty in future slaughter prices, TVC added. AHDB announced a 30kg store pig price at £56.70 but there was insufficient data to formulate a 7kg weaner price.

European Prices (p/kg.dwt) w/c 10/07/22   Movement on last week

SPP                                          188.88             + 2.49

Tribune Spot Bacon                196.55             + 1.75

European Av.                          158.26             – 3.08

Belgium                                   142.78             – 4.61

Denmark                                 128.40             – 3.22

France                                     188.37             n/c

Germany                                 156.48             – 3.69

Ireland                                     164.09             – 4.01

Holland                                    144.56             – 3.52

Spain                                       183.38             – 2.31

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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