Retailers need to understand that prices need to increase now – TVC

Retailers need to understand the urgent need for further pig price rises, as ‘apathy’ in some quarters continues to hold the market back, according to Thames Valley Cambac (TVC).

Last week, discussions were dominated by pricing, and how rapidly the market can breach the £2/ kg mark, so producers can break even, TVC said in its latest market update.

“These discussions were given impetus by the largest single week rise in the SPP – up 7.18p at 157.73p. Most processors now seem to acknowledge the need for rapid increases but seem to be hamstrung by apathy in some retail quarters,” it said.

“There needs to be a realisation throughout the supply chain that prices need to increase NOW, or the future marketplace scenario will be very different.”

With regard to pig movements, the Easter holiday disruption was minimal, with most majors working full weeks. Prices appreciated again helped by the aforementioned SPP rise. The fresh meat market was quieter, but it was hoped that a warm Bank Holiday weekend would encourage the first barbecues of the year.

The cull sow market was limited by the Easter break, and not helped by logistic congestion at the ports. European prices stood on, with the exception of the Netherlands, but all quotes were compromised by a weaker Euro that ended the week down 0.44p at 82.91p.

The waener market is improving slowly, as the slaughter backlog eases and unit turnarounds are getting back to plan. Spot weaners are still a struggle however, as the feed costs spiral and discourage any but the very brave from participating, TVC added.

There was insufficient data for the AHDB to formulate any prices.

European Prices (p/kg.dwt) w/c 17/04/22   Movement on last week

GB SPP                                     157.73             + 7.18

Tribune Spot Bacon                175.32             + 5.17

European Av.                          147.16             – 1.30

Belgium                                   145.34             – 0.78

Denmark                                 116.98             – 0.72

France                                     167.72             – 0.82

Germany                                 161.67             – 0.87

Ireland                                     134.31             – 0.73

Holland                                    139.53             – 4.09

Spain                                       164.74             – 0.89

Ref Weekly Tribune