Poor Retail Demand

by 5m Editor
27 June 2011, at 6:41am

UK - Although DAPP rose again this week to 152.34p, weekly prices announced by Tulip, Cranswick, Vion and Woodhead all remained at stand-on levels between 151p and 155p.

Poor retail demand for pigmeat meant that one of the major abattoirs cut its throughput for next week with the result that extra pigs were put on to a lacklustre spot market where prices tended to ease by 2p–3p/kg, although later in the day some spot quotes recovered slightly with most spot bacon traded in the 154p–156p range with modest premiums in areas where numbers were slightly shorter.

Cull sow prices generally held at similar levels helped by the relative strength of the euro which closed on Friday worth 88.73p and export abattoir quotes were generally ranging 97p–100p/kg on a delivered basis.

The weaner market remained over supplied and as a result sellers were still finding it difficult to find homes for 7kg and 30kg weaners.

The latest Agricultural and Horticulture Development Board 30kg ex-farm weaner average stands at 345.77/head, but has yet to reflect the benefits of falling feed prices with ex-farm feed wheat quoted at 3169/tonne compared with 3200/tonne at the end of April.

Further falls in commodities prices would provide hard-pressed pig producers with welcome relief at a time when their margins remain under pressure also partly due to some of the major retailers' reluctance to recognise much higher production costs and pay producers accordingly.