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Poor retail demand hits processor allocations

Alistair DriverBy Alistair DriverMay 23, 20222 Mins Read
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Poor retail demand hit the allocations of pigs taken by processors last week, according to Thames Valley Cambac (TVC). 

In its latest market update, TVC described last week as a frustrating one for producers, who are anxious to see prices improve, and enough pigs marketed to cover burgeoning bills.

“However, many processors commented on poor retail demand as the reason for low number allocations. It seems that we will only see significant price movement when slaughter numbers decrease,” it said.

“Thanks must go to all the retailers that are supporting our pig farmers, with Waitrose, Co-op and Tesco the latest to announce funding, but we fear that it is too late for many as production costs spiral ever higher.”

TVC reported that demand in the fresh meat market steadied slightly due in part to a touch more import pressure but prices remained similar, while the market for cull sows was quieter with exporters challenged by selling into an oversupplied market -volumes.

European markets were stable except for Ireland which added 4 eurocents. Price quotes in sterling were further compromised by a weaker Euro that ended the week down 0.29p at 84.82p.

Weaner demand remained weak, with little interest for anything outside contract arrangements, and fatteners
unwilling to commit without a guaranteed finished price agreement. There was insufficient data for AHDB to calculate any prices.

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

GB SPP                                   172.76             + 1.14

Tribune Spot Bacon                183.96             + 1.85

European Av.                          148.77             – 0.01

Belgium                                   136.56             – 0.48

Denmark                                 126.47             – 0.52

France                                     172.86             – 0.60

Germany                                 152.68             – 0.53

Ireland                                     147.59             + 2.89

Holland                                    135.37             – 0.56

Spain                                       169.64             – 0.59

(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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