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Photo of Producer share of retail price starts New Year at a low

Bethan Wilkins

Analyst

AHDB Pork Market Intelligence

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Producer share of retail price starts New Year at a low

Home \ Prices & Stats \ News \ 2015 \ February \ Producer share of retail price starts New Year at a low

January saw a drop of one percentage point on the month in the share of the final retail price of pork received by the producer, to 37%.

This is the lowest proportion since January 2009 and is 5 percentage points down on the same month last year. This decrease has been driven by continued falling farmgate prices, which has increased the gap to retail prices, where some stability was evident during the month. Over the year, farm gate prices have fallen much faster than the retail price, in percentage terms, according to AHDB/BPEX estimates. The producer’s share for bacon followed suit and dropped to 33% in December, down over 1 percentage point since November and 3 points on the year. Farmgate prices fell, as for pork, but bacon retail prices increased on the month, creating the widest gap between the two over the year.

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After the festive sales, in January retail prices for the majority of pork cuts decreased slightly. The price of sausages, in particular, dropped by around 4%. Fillets, mince and roasting joints also decreased on the month. Loin steaks, however, increased by around 2%. All these cuts were cheaper than last January, apart from loin chops which have sustained consumer demand allowing prices to increase by 16% year on year. However, as cuts based on the loin are already the most popular, the effect of these price movements on the overall carcase price at the farmgate remains a challenge.