The major processors have increased its weekly price by 12-16p today, as EU pig prices soar, delivering UK producers, who face unprecedented and unmanageable costs of production, a much-needed boost.
Cranswick has confirmed a 16p hike in its weekly price, while at least two more of the big players are understood to have upped prices by 12p and 16p.
The increases come as pig prices soar across Europe, notably in Germany, where the finished price is up more than 23p on the week, with the sow price 22p higher. Prices are up across the board, with a similar-sized leap in Belgium and big upward shifts in Spain, the Netherlands, France, Denmark and more.
Pig producers, who have already endured more than a year of negative margins, compounded by the pig backlog, have recently been hit by the massive spike in the wheat price caused by Russia’s invasion of Ukraine.
This prompted the NPA to call on retailers to increase the amount they pay for pork up to beyond £2/kg to enable producers to just break even. The SPP currently stands at 138p/kg. EU prices are also starting to rise rapidly, most notably in the influential German market, prompting expectations of a general increase in the UK pig price over the coming weeks.
Cranswick’s big weekly increase, albeit not yet enough to see producers back into the black, is a positive step in the right direction.
A Cranswick spokesman said the price increase reflected the escalating cost situation on pig farms. “We are working with the retailers and all of our customers on a daily basis on this. There is a recognition of the increased cost pressures the industry is facing and the impact this is having on pig farms, and we are doing what we can to support the industry,” he said.