UK pig prices - week ended 9 January 2016
Despite some firming in the EU market last week, UK prices did not follow suit, with the EU spec SPP for week ending 9 January falling by nearly 3p week on week to 119.09p/kg.
The UK pig price, however, is still around 25p more than the average EU reference price. Nevertheless, this is the eighth consecutive week that prices have fallen and represents the largest weekly drop in prices in well over a decade. The current quote falls even further behind the same week last year, being back by 23p/kg. The fall in price over the last week comes as demand weakens as the market experiences a post-Christmas decline. In addition, estimated weekly slaughterings increased to 174,700 head. Compared to a year earlier this would mean slaughterings were up by 8,300 head. The average SPP carcase weight was also a kilo heavier than the previous week at a record 84.02kg. Similar to last week, the increase in weight is partly due to producers being unable to market pigs over the Christmas and New Year holidays.
The EU-Spec APP recorded a much smaller decline in price week on week. For week ending 2 January, the price fell 0.50p to 127.18p/kg. The current quote is 18p behind the same week last year, although the gap closed as the price fell more in 2015. The gap between the SPP and APP increased to above 5p, as the SPP recorded a sharper fall in the same week.
Prices in the weaner market recorded diverging trends, reversing the movement in the previous week. In week ended 9 January, 30kg weaner prices increased 55p per head, bringing the average price up to £39.59 per head. However, 7kg weaner prices decreased for the first time in four weeks, by 21p to £31.34 per head. The current prices for both weaner types are still behind those of last year, by £8 (30kg) and £3 (7kg).