EU pig price rise begins to slow
The rise in EU pig prices began to slow going through July and August, with the reference price closing at €163.62/100kg for week ended 21 August.
For week ended 21 August, this was the first time a weekly decline, albeit a modest one of €0.05/100kg, had been recorded since April 2016. However, the reference price is still €21.71/100kg more than at the same point a year earlier, having risen €1.09/100kg over the latest four-week period. This price increase rate is significantly slower than that recorded over the four weeks prior to this period.
The slowing of the price increase is suggesting that supply is now at a balance with demand. While supplies have been tightening among many member states, there has also been a decrease in demand. There have been reports of a disappointing barbeque season, particularly in Germany, which has affected domestic demand. However, strong export volumes to the Far East has helped to support this drop in domestic consumption, thereby assisting in stabilising the price.
There were fluctuations in the price changes from major producing member states over the latest four weeks. Germany, Spain and France all recorded modest price increases, but none of them over €1/100kg, while Denmark and the Netherlands saw their pig prices fall back, by €2.60 and €1.99 respectively.
While the UK reference price continues to stand behind the EU price, by just under 9p/kg for week ended 21 August, this fall has not been exacerbated over the latest four-week period, despite the continued weakness of sterling against the euro.
Vikki Campbell, Senior Analyst
Vikki.Campbell@ahdb.org.uk, 024 7647 8741