Producer share of retail price hits new low
The percentage of the retail pork price received by producers fell further in January, to below 32%.
Farmgate pig prices fell once again in January (down over 7p/kg month on month), to the lowest level since April 2008 at 121.59p/kg. Despite the fall in farmgate prices, the average retail price stayed the same as December. This meant that the percentage share of the retail price received by the producer in January declined further, to the lowest level in well over a decade, at just under 32%. Compared with January 2015, farmgate prices have fallen by 16%. Over the same time period, the average retail price has only fallen by 1%. This has resulted in the percentage share received by producers falling by 5 percentage points from January 2015 to January 2016.
Retail pork prices by cut in January recorded diverging trends, based on prices collected by AHDB Market Intelligence. Fillet of pork, loin chops and diced pork all recorded an increase of 3% on the month, while minced pork rose by 2% and fillet end leg and loin steaks both increased by 1%. However, traditional pork sausages (-4%), boneless leg (-3%) and boneless shoulder (-2%) all recorded price decreases. Compared to January 2015, average retail prices showed more of a variation. While fillet end leg and pork fillet were 7% and 6% more expensive in January compared to the same point last year, traditional pork sausages and boneless shoulder were 5% cheaper. Other cuts recorded smaller price movements.
Millie Askew, Analyst
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