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Shortage of pigs should continue to fuel prices – TVC

Alistair DriverBy Alistair DriverJanuary 23, 20232 Mins Read
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The recent trend of rising pig prices should now continue as the market becomes increasingly short of pigs, according to Thames Valley Cambac.

As predicted, the SPP returned to its upward track last week, after the unexpected drop during the first week of January, gaining 1.65p to reach to a new record level of 201.85p/kg. The SPP is now nearly 63p ahead of where it was a year ago on the back of continuing reports of current or looming shortages and stable EU prices.

“It was welcoming to see the positive rise within the SPP, following the previous weeks reduction,” TVC said in its latest market update.

“We would now hope this trend is to stay positive and processors Q prices increasing, given the shortages of pigs within the market. Even if we are in the January blues, where we are told sales of meat were low, processors still wanted their pig numbers, purely because they do not want less supply come March onwards, when historically demand picks up, some may say they are laying product now ahead of this.

“We have also been in negotiations with some processors in reference to their specifications and what we can do to adjust these to incentivise producers to help by sending more animals.”

European prices and sow prices stood on which, TVC added, shows there is not a surplus of pigs in Europe either. Prices in sterling were compromised by a weaker euro.

Weaner and store supply remains particularly tight but there is an improving demand from fatteners
brave enough to stick their heads above the parapet, it noted.

UK and European Prices (p/kg) w/c 23/01/23        Movement on last week

SPP                                         201.65                         +1.45

Tribune Spot Bacon                204.53                         +0.20

European Av.                          171.43                         -1.73

Belgium                                  158.12                         -2.16

Denmark                                 133.06                         -6.62

France                                     205.68                         +3.13

Germany                                 175.20                         -2.40

Ireland                                     180.46                         -2.47

Holland                                   155.05                         -2.66

Spain                                       192.28                         +0.83

(Ref Weekly Tribune)

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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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