How does the exchange rate affect the GB pig price?
Read the first of two articles analysing the impact of exchange rates on the UK pig market.
One of the main developments affecting UK agriculture recently has been the strengthening of the pound against the euro. Since July 2013, the euro has fallen from 87p to be worth only 70p. These movements are important for the pig industry. Historical trends confirm that there is a close relationship between pig prices and the exchange rate.
In the first of two articles looking at how exchange rates influence the pig market, we examine the role that import prices play in influencing GB pig prices. Based on the analysis, we estimate that the GB price might now have been 15-20p higher had the exchange rate not moved over the last two years.
To read the analysis in more detail, click here.