Tulip & Woodhead Take Off; Vion & Gill Drop

by 5m Editor
30 January 2012, at 7:58am

UK - Although Friday proved to be another difficult day for sellers following a further slide in the DAPP which shed another 2.07p to 143.35p, shout prices fell by less than this with only Tulip and Woodhead taking 2p off whereas Vion and Gill dropped a penny and Cranswick thankfully stood on, Peter Crichton writes.

The league table now reads as follows:

  1. 138p Woodhead, Gill.
  2. 136p Tulip
  3. Last 135p Vion, Cranswick.

Signs are also starting to emerge of slightly more optimism on the European mainland pigmeat market backed up by slightly firmer cull sow quotes.

The current malaise hitting the finished pig sector is more due to a lack of demand than too many pigs, but on Friday spot sellers found it slightly easier to move pigs than the previous week although quotes still drifted downwards by 1p–2p in places.

As a result most spot bacon was traded in the 128p to 132p range depending on specification, but there is still a wide divide of around 6p/kg between average spot and contract base prices.

But with reports of firmer prices in Europe with Germany, Belgium and Holland all showing rises as well as the relative stability (for now) of the euro which traded on Friday worth 83.6p, it would not come as a surprise to see a modest pig price rally start in the weeks ahead.

Cull sow quotes also provide a ready barometer of the state of the European Union pigmeat market and most United Kingdom export buyers lifted their quotes by a couple of pence with prices generally between 109p–113p and all three of the main outlets were still looking for stock by the close of business on Friday.

Weaner prices are also tending to improve and although the latest Agriculture and Horticulture Development Board 30kg ex-farm weaner average which includes a significant proportion of contract base prices is still languishing at 344.61/head, spot weaner supplies are tight and there are 2p–4p premiums for Freedom Food accredited pigs.

Producers are advised however to keep a close watch on commodity prices which have seen cereal values increase on an almost daily basis and ex-farm wheat is now quoted in the region of 3155/tonne which will continue to put adverse pressure on producers' margins and represents a rise of 315/tonne over the last 20 days.