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Producers getting record share of retail prices, despite lower demand

Chloe RyanBy Chloe RyanJuly 20, 20172 Mins Read
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The share of pork retail prices received by producers increased by 1% on the month in June to reach 43.8%, the highest proportion received by producers in records going back to 2009.

While the average retail price remained unchanged on the month in June, the EU-spec APP rose by 1%, which led to the producers’ share rising once again. Likewise, with farmgate prices remaining considerably higher than in June last year, the current producers share is nearly 11 percentage points higher.

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Marginal monthly price movements for different cuts of pork were recorded in June. However, in June, fillet end leg was 7% more expensive compared to the same month in 2016, while loin steak was 7% cheaper.

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During the 12 weeks ended 18 June, the primary pork volume sales decreased by 3% on a year-on-year basis, according to the latest data from Kantar Worldpanel. However, a 5% increase in the average retail price meant that overall spend was up by 2%.

Roasting joints have continued to record a decline in sales over the 12 week period, which as commented on in previous months could perhaps be linked to the reduced promotional activity seen this year. Shoulder roasting joints saw a dramatic drop in volume sales with a reduction of 22%. Although in contrast to this, average price was up by 8%.

Bacon which had been struggling has seen some small increases in both volumes and average price resulting in the total spend increasing by 3%. This is supported by other Kantar Worldpanel information, indicating that bacon was purchased on 1.5 million more shopping trips compared with last year. Other processed products also performed well including sausages with volume sales up 2% and sliced cooked meats, up 3%.

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Chloe Ryan

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