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DAPP Nudging Ahead to Stand at 143.9p

by 5m Editor
17 April 2010, at 6:06am

UK - Unlike in the political arena, no great debate on pig prices this week with prices holding at very similar levels and the DAPP nudging ahead a shade to stand at 143.9p, writes Peter Crichton in his Traffic Lights commentary.

Very much of a one-priced-pig on the menu with most spot bacon quotes at around the 143p mark and an odd copper or two extra in places where bells and whistle were available.

Although some abattoirs have been looking for increased numbers of pigs from outdoor and high welfare systems, we should not forget that the indoor units are also operating to very high standards and on welfare grounds are well ahead of their European counterparts. This is a sector of the market that also needs to be supported by consumers, retailers and the pig industry as a whole.

Any further increase in the strength of sterling on the back of the outcome of the upcoming general election would be unfortunate for the pig industry as a whole because a weaker euro will inevitably lead to more cost cutting imports hitting these shores and reducing cull sows quotes, which are already almost 25p/kg behind their equivalent position a year ago.

The euro closed on Friday worth 87.6p, which is almost exactly its value a week ago.

Cull sow quotes were in the 100p region for bigger loads on a flat rate spec reflecting downward pressure on the European Union mainland pigmeat market whose customers are still able to buy United States and Brazilian product at bargain basement prices.

Weaner prices however continue to reflect an upcoming shortage of United Kingdom pigs in the system with the Agriculture and Horticulture Development Board 30kg ex-farm average now standing at £54.21/head and this sector is reflecting bullish (pardon the mixed metaphor) trends.

And for those of you worried about the dust cloud heading down from the north, this cannot surely be linked to a rare report that Digby McScott was seen to open his wallet recently?