Producer share of retail pork price at 11-year low
Farmgate pig prices fell for the third consecutive month in October, leading to the share of retail prices received by producers declining to 34%. This was the lowest share recorded since November 2004.
Farmgate prices dropped by 2% on the month, the largest change since February. Despite the reduction in producer prices in recent months, the average retail pork price increased in October, albeit by only half a pence per kilogram. While the average retail price remains just below (1%) the figure for 2014, farmgate prices have recorded a much greater reduction of 16% year on year. As a result, producers’ share of the retail price was six percentage points lower than in October 2014.
Retail pork prices as a whole remained relatively similar to the previous month in October, with small changes recorded on a variety of different cuts. Boneless shoulder and fillet of pork recorded the largest monthly increase of 3%, while boneless leg increased by 1%. However, loin chops (-2%), diced pork (-1%), minced pork (-2%) and traditional pork sausages (-3%) all recorded price decreases. The average retail price across all of the cuts in October was also about the same as a year earlier. While fillet end leg was 5% more expensive than last year, diced pork was 3% cheaper in October. Other cuts that are monitored by AHDB MI recorded smaller movements.