As new figures highlight the staggering losses pig producers are currently enduring, the need for pig price increases becomes even more stark, according to Thames Valley Cambac.
AHDB estimates the current reported cost of production at 203-216p/kg on the back of soaring feed, energy and fuel costs. With the SPP around the 150p/kg mark and carcase weights averaging of 94kg, this puts estimated losses at around £46-£61 per pig sold into the supply chain.
“Our market does not have time to take stock, prices must continue to rise, with everything else,” TVC said in its latest market update.
“Contributions for this week have stalled, where used as one element of pricing in some contract deals, although the other elements have risen. Smaller and medium sized buyers without the same price configurations have continued contributing a reflection of SPP and Tribune prices combined and halved, or around 4-5p/kg.”
The SPP was up 3.56p rising above the 5-year average by 2p at the start of Q2, which is much-needed, while the German market stood for the first time in a while. The sow market has stood on ahead of the two short weeks over Easter.
“So, there is still some way for prices to go before our industry is through its biggest challenge in decades. Let us hope the two short weeks ahead allow us to keep nibbling away at the backlogs,” TVC added.
“Regular contract weaners continue to flow better for now, with notably less being held a few extra days on farm as the available finishing shed space eases slightly. Very small pockets of interest are emerging outside contract arrangements, although feed costs continue to discourage new buyers,” TVC’s report added.
AHDB’s published 7kg price last week was £34.07/head, up £1.22p from the last recorded price in early March.
European Prices (p/kg.dwt) w/c 10/04/22 Movement on last week
Tribune Spot Bacon 170.15 + 2.25
GB SPP 150.55 + 3.56
European Av. 148.46 – 0.22
Belgium 146.12 – 1.39
Denmark 117.70 – 1.11
France 168.54 + 0.50
Germany 162.54 – 1.54
Ireland 135.04 – 1.27
Holland 143.62 – 1.61
Spain 165.63 + 5.00
(Ref Weekly Tribune)