Producer share of retail price down in December

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Farmgate prices decreased once again in December, to the lowest level of the year. This fall, coupled with an increase in the average retail price compared with November led to the share of the retail price received by producers declining to just under 34%.

This is the lowest figure recorded since 2002, although there could have been some methodological changes since then. For 2015 as a whole the share was down by 5 percentage points on 2014, at an average of 35%. Farmgate prices fell by 19p/kg (13%) compared with December 2014. In contrast, the average retail price fell by just over 5p (1%). This resulted in the percentage share received by the producer falling four points over the same time frame.

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Retail pork prices by cut in December saw a combination of increases and decreases on the month. Boneless shoulder and leg recorded the largest increase of 2%, whilst fillet end leg and loin chops rose by 1%, with a marginal increase seen in diced pork. However, loin steaks and minced pork (both down 3%) and traditional pork sausages (2%) all recorded price decreases. Fillet of pork saw a marginal decrease of less than 1%. Compared with December 2014, average retail price showed more marked variations. Whereas fillet end leg was 7% more expensive than last year, diced pork was 5% cheaper. Other cuts that are monitored by AHDB MI recorded smaller movements.