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Bethan Wilkins

Analyst

AHDB Pork Market Intelligence

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Falling farmgate prices reduce producer share of retail price

Home \ Prices & Stats \ News \ 2015 \ March \ Falling farmgate prices reduce producer share of retail price

The producer’s share of the final retail price of pork in February was 36% according to BPEX/AHDB estimates.

This is one point down on the month, a continuation of a downwards trend since October last year, and is six points back on the year. The most recent drop is due to the continued falling farmgate price for finished pigs, as retail prices have remained broadly stable for the last quarter. In January, the producer share for bacon was still less than pork, at 34%. Although this was just under one point up on the end of 2014, as retail prices were cut quite sharply, it is four points down on the year, reflecting the continued fall in farmgate prices.

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Of the most popular cuts, traditional pork sausages were discounted the most in February by retailers, with prices being around 2% down on the month, according to the latest AHDB price survey. Other cuts were less affected, for example loin chops/steaks and minced pork prices were up less than 1%, while boneless leg joints and fillet prices eased by less than 1%. In a year on year comparison, however, the trend puts all cuts as cheaper now with the exception of loin chops. Again sausages and boneless leg joints have the biggest price differential, falling by 11% and 9% respectively.