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Pig Prices Ease Back as Euro Weakens

by 5m Editor
26 June 2010, at 9:38am

UK - With no 'R' in the month, strawberries and Wimbledon used to be more of a problem for pig sellers before fridges were invented. But in modern times this has proved to be much less of a challenge, writes Peter Crichton.

However, some signs are starting to emerge of an easing in prices, which have risen steadily through the year. The DAPP closed very marginally lower, losing 0.02p to 146.8p, which is still 8p better than where it was at the start of the year.

Some of the smaller fresh meat abattoirs are also commenting that sales have not been as brisk as they had expected, although we all have the World Cup to look forward to (huh?) on Sunday.

If the Germans are no better at football than they are at winning wars this might allow England to progress to the next round and keep the home fires (barbecues) burning… we shall see.

Spot bacon quotes tended to be anywhere between stand-on and 2p off, according to specification, but in general 148p proved to be an accurate base price with small premiums available on tighter specs or for lighter weight pigs.

The euro has remained under pressure all week and closed on Friday worth 82.1p compared with 83.5p a week ago.

Pigmeat and cull sow prices in mainland Europe have also been falling and coupled with the lower value of the euro it was no surprise that British cull sow buyers dropped their prices, although in the main by only around 2–3p and not the 5–7p they were looking for to try and balance their books.

Collected prices for cull sows were in the 93–95p range, but it was hard to get much more than 97p on a delivered basis.

Weaner values also continue to reflect the fairly static nature of finished pig prices and although forward feed quotes are easing, the Agriculture and Horticulture Development Board 30kg ex-farm weaner average has remained almost static at 354.24/head.

If European pigmeat prices continue to drift downwards, especially if the euro remains weak, this will allow more foreign imports to undercut the domestic market.

Now might be the time for those producers still sitting on the fence about proposals originally submitted by Jimmy Butler for a promotional advertising levy to persuade BPEX to support this innovative suggestion. With good margins at present the industry can surely afford a relatively small contribution to help ensure a strong future in marketplace for British pigmeat.