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Producer share of retail price reaches three-year high

Alistair DriverBy Alistair DriverMarch 21, 20172 Mins Read
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The share of pork retail prices received by producers topped 40% in February, a three-year high, on the back of relatively stable producer prices and declining retail prices.

The February average figure of 40.5% represented a 0.5%  increase on January and a remarkable 10.5% difference on the figure recorded a year ago. In fact, it was the largest share since July 2014.

The EU-spec APP lost 0.70p/kg on the month during February but, at around the 153p/kg mark remained approximately 37p/kg higher than the same month a year earlier.

Meanwhile, the average retail price recorded a decline of 6.7p/kg, pushing producers’ share of the overall pot up.

Retail pork prices for different cuts recorded differing trends on the month in February, according to AHDB Pork. Boneless leg saw the greatest decrease of 4% month on month, while boneless shoulder, loin chops and loin steaks fell by 2%, 1% and 1% respectively.

However, fillet of pork, minced pork and traditional pork sausages all recorded a price increase of 1% on the month. Diced pork and fillet end leg prices both remained relatively unchanged on the month.

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Relative to February 2016, price movements were also mixed. Boneless leg, loin steaks and minced pork were all 4% cheaper, while diced pork fell in price by 3% year on year.

Likewise, both boneless shoulder and traditional pork sausages both decreased in price by 2%. On the other hand, fillet end leg and fillet of pork increased in price on the year by 5% and 2% respectively, while loin chops remained stable.

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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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