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Bethan Wilkins

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AHDB Pork Market Intelligence

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Producer price share lowest of year in December

Home \ Prices & Stats \ News \ 2015 \ January \ Producer price share lowest of year in December

During December of last year, the producer share of the final retail price of pork remained at 38%, only slightly down on the previous month, according to AHDB/BPEX estimates. However, with farmgate prices falling slightly faster than retail prices, the two continued to diverge in December, with the highest percentage difference between them since early 2012.

During December of last year, the producer share of the final retail price of pork remained at 38%, only slightly down on the previous month, according to AHDB/BPEX estimates. Farmgate prices continued to fall to the lowest of 2014 but retail prices were also discounted for the festive sales. However, with farmgate prices falling slightly faster, the two prices continued to diverge in December, with the highest percentage difference between them since early 2012. This combination meant that the producer was receiving 5 percentage points less than this time last year. The producers’ share of the bacon retail price in November fell slightly to 34%, back nearly 4 percentage points on the year, as the spread between farmgate and retail prices also grew.

Producer price share lowest of year in December

In light of both an increase in demand for certain pork cuts in the run up to Christmas, as well as retailers dropping prices to attract maximum holiday sales, there was some movement in retail prices in December. Most notable was the 4% drop for boneless leg joints, for roasting, to their lowest price since 2011. However, this was in part offset by a 4% rise in traditional sausage prices. All reported cuts, with the exception of loin chops, were cheaper in December 2014 than 2013, reflecting the downward trend of most meat prices seen throughout much of last year.