Less Chance for Pig Producers to Get Fair Deal

by 5m Editor
23 May 2011, at 9:31am

UK - Although the DAPP continued its steady upwards stumble and put on a further 1.7p to stand at 146.48p, a quick glance at the grain market futures prices indicates producers have no chance of getting out of the red unless we see further significant increases in finished pig prices in the very near future, writes Peter Crichton.

Unfortunately all of the major players took their cue from Tulip who stood on with their weekly price of 150p and the upcoming short week has given abattoirs looking for extra numbers a brief respite at the producers' expense.

Spot trade was generally quiet with bacon in the 155p–160p range according to specification, although some of the smaller abattoirs were quoting prices on the top side of 160p, but were not looking for particularly big numbers.

Sow prices took another downward step despite the value of the Euro remaining almost static on the week and closing worth 87.44p.

Reports of additional supplies of pigmeat coming out of European cold stores are tending to throw something of a wet towel on the European pigmeat market and we can only hope that better barbecue demand in the months ahead will reverse this trend.

Cull sow sellers who were prepared to haggle could get prices in the 100p region with others fairing less well in the 96p–98p range.

Weaner prices continue to reflect the drought related feed situation and the latest Agriculture and Horticulture Development Board 30kg ex-farm average remains almost unchanged at 345.71/head.

The latest LIFFE wheat futures prices are quoting 3203/t for May and 3195/t for July and in the eastern region of Britain crop yields have been hard hit with some arable farmers reporting they are unlikely to get much more than 2/t/acre compared with 3.5/t in a normal year.

Straw will also be like gold dust and heaven help those outdoor producers who may have to face another cold winter with inadequate straw stocks on hand.

The retailers need to understand that pig farmers looking for more money are not being greedy, it is simply a matter of survival and whilst they seem to be prepared to pay more money for beef and lamb, the pig industry remains their loss leader.

Sometimes I feel there is less chance of pig producers getting a fair deal from some of the big retailers than of Nelson finding his missing arm.