EU prices increasing again
Pig prices in the EU have begun to increase again, following a slight backwards movement around the end of February, with most Member States showing a similar pattern.
The latest average pig price, for week ended 3 April, was €128.52 per 100kg. While this was a slight decrease on the previous week, it is still an increase of over €4 on the beginning of March. There was an improvement in price recorded in the build up to the Easter holidays as demand was reportedly strong. Nevertheless, with prices still historically low, the EU has stated that it will investigate re-opening Private Storage Aid and look to establish a Meat Market Observatory. These actions may help to further stabilise the EU price, if they come to fruition. However, it is also prudent to remember that some of the pig meat stored during the PSA in January will soon be released onto the market, at a time when it is still under significant pressure.
In sterling terms, the EU pig price has also been rising over recent weeks, although it fell slightly in the week ending 3 April. It now stands at 102p/kg, back to levels last recorded in October 2015. The improvement in the EU pig price, coupled with the continued decline of the UK price and the weakening of sterling against the euro, has resulted in the UK premium now sitting at around 10p/kg. This is the lowest level recorded since September 2013 and could mean less demand for imported pork, helping to support the UK market.
Vikki Campbell, Senior Analyst
vikki.Campbell@ahdb.org.uk, 024 7647 8741