Producers ‘caught in crossfire’ of retailer pressure to keep consumer prices low – TVC

Pig producers, currently under severe pressure from soaring input costs, are bearing the brunt of the retail drive to keep consumer prices down, according to Thames Valley Cambac (TVC).

“Pricing took front and centre of most discussions last week, with costs of production rising ever higher
and producers concerned by the apparent lack of concern from processors,” TVC said in it latest weekly market update.

“In their defence, it seems that there is serious pressure from retailers to keep the cost of shoppers’ baskets low, and we are caught in the crossfire.”

“Prices did move up, helped by another 3p rise in the SPP. One of the major’s bucked the trend with a double-digit increase, while others chose to stand on with their contributions. The fresh meat market was brighter again, with many wholesalers seeing decent trade – possibly helped by the lack of import pressure.”

The cull sow market suffered slightly due to disruption caused by the May Day holiday on the continent, but prices stood on. European prices were stable, with only Ireland and Denmark showing any lift in prices. The Euro was little changed ending the week at 83.91p.

There were few opportunities for weaners outside contract arrangements, as the very high feed cost dissuaded
fatteners from bidding. “Unless there are clear signs that finished pig returns will cover this cost, then the
free market will become insignificant,” TVC added.

AHDB announced a weighted store pig average at £39.31.

European Prices (p/kg.dwt) w/c 01/05/22   Movement on last week

Tribune Spot Bacon                179.05             + 2.12

SPP                                          164.92             + 3.18

European Av.                          150.11             + 0.64

Belgium                                   142.73             – 0.03

Denmark                                 122.93             + 2.25

France                                     170.33             + 0.21

Germany                                 163.62             – 0.03

Ireland                                     142.64             + 1.65

Holland                                    140.46             – 0.03

Spain                                       167.82             – 0.03

Ref Weekly Tribune