Pig Prices Finally Start to Move Ahead

by 5m Editor
27 February 2012, at 5:33am

UK - As predicted, pig prices have at long last started to move ahead with the opening salvo being fired by spot buyers.

Tulip's inappropriate decision to stand-on at a time when the pig price Traffic Lights were changing to green was met with widespread dismay across the industry, as it resulted in the other four shout price buyers following suit.

So the league table is unchanged.

1. Woodhead 138p
2. Gill 137p
3. Tulip, Vion, Cranswick 135p

Spot base prices were generally no lower than 134p but shrewd sellers were able to obtain 2p–3p premiums above this according to spec.

Smaller fresh meat buyers are however still reporting a very quiet demand and it looks as though any further price recovery will be bacon led with lighter weight porkers and cutters becoming much more of a minority species these days.

The recent euro rally has seen its value rise from 83.17p to close on Friday worth 84.87p which has effectively put up the price of imports by 2 per cent and also added a similar value to cull sow quotes.

The three major cull sow abattoirs were all looking for volume but with shorter numbers coupled with relatively firm European mainland pigmeat prices, it was inevitable that cull sow buyers would up their bids which today saw quotes generally in the 120p–124p range according to spec.

Weaner prices are still somewhat stuck in the doldrums with the latest Agriculture and Horticulture Development Board 30kg ex-farm average quoted at 344.65/head, but useful premiums available for spot weaners especially if Freedom Food accredited, at 32– 33 above this.

Cereal prices seem to have levelled after two months of almost continuous rises with March wheat quoted on the LIFFE market at 3166.00/tonne and July at 3167.25/tonne with ex-farm feed wheat traded at around 3160.00/t tonne which is still quite expensive in relation to pigmeat prices, which is another reason why the pig price improvement needs to be maintained in the months ahead.