Declining hog prices come amid higher pig meat production so far this year.

Over the four weeks ending 22 August, the EU average reference price decreased by over €6 to just under €145/100kg. This is the lowest level recorded since March. EU pig prices are typically quite stable over the summer months and so the recent falls mean the latest average is now 11% lower than the 5-year average for the time of year.

Prices have fallen in most key producers (except in Poland), but the biggest falls have been in Germany and Spain. The average price in both these nations has dropped by over 10% over the past four weeks. Spain is particularly affected by any weakening in export demand to China, while Germany continues to struggle with limited third country export opportunities due to ongoing African swine fever outbreaks within its borders.

The latest EU pig prices can be found here.

The continuing fall in EU pig prices has meant the discount relative to UK prices has widened further. Over the past three weeks the UK reference price has hovered about 36p/kg above the EU average. This is a large difference, with the average over the past five years only around 13p/kg. This might exert downward pressure on the UK price.

Words: Bethan Wilkins