A Better Day as Retail Demand Picks Up

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A Better Day as Retail Demand Picks Up

08 October 2012

UK - A better day for sellers following some fairly significant shout price recalculations with Cranswick and Vion playing catch-up. writes Peter Crichton.

The shout price table now reads as follows:

161p (+1) Woodhead
159p (+1) Gill
157p (+1) Tulip
157p (+2) Vion
157p (+3) Cranswick

Retail pigmeat demand is reported to be improving and as a result several spot buyers were out looking for pigs that may soon be hard to find with bids in the 160p–163p/kg range available, but contract prices are starting to close the gap with spot.

A slight recovery in the value of the euro which traded on Friday worth 80.3p is also helping to maintain the cost of imported pigmeat and cull sow quotes have remained at firm stand-on levels with most in the 116p–119p/kg range according to load size and specification.

The weaner market has yet to take off, but once supplies start to tighten and providing finished pig returns continue to improve we should soon move ahead from current low levels with the AHDB 30kg ex-farm weaner average still quoted at a depressing £39.90p/head.

Cereal prices have had a fairly quiet week with ex-farm feed wheat quoted at just over £190/tonne and on the futures market LIFFE feed wheat was traded at £199/tonne for November and £204/tonne for July.

Slight reductions in the value of soya will also help to improve the cost equation, but pig prices have yet to catch up to put producers back into the black, which is where they badly need to be.

Recent BPEX reports that there will soon be a global shortage of pigmeat are also helping to restore some confidence into our battered industry, but between now and Christmas a rise of at least 10p/kg will be needed with more to follow next spring to put producers in a position where they can not only afford to continue in production, but reinvest in what in many cases are worn-out herds, facilities and staff.