EU pig prices continue their rise
EU pig prices continued their rise throughout June and July, taking the reference price to €162.54/100kg for week ended 24 July.
This was the highest level since September 2014, and over €18 more than the same point a year earlier. The EU average reference price increased by over €7 over the latest four weeks. While this is still a significant rise, it is slower than the price increase recorded over the four weeks prior to this period.
A tightening of supply against a backdrop of increased demand is causing this strengthening of the market. Tighter supplies in some member states have occurred earlier than forecast. Domestic demand has been supported by the barbeque season well underway in northern Europe, while the tourist season is in full swing in the south of the continent. Furthermore, export demand, particularly for China, continues to hit record levels.
All the major producing states recorded rising prices over the latest four weeks. The dominant German price increased over €8 over the period, while the Spanish price increased by just shy of €10. The Irish and Dutch increases were more modest, at €4.15 and €2.27 respectively.
Both the increasing momentum of the EU market, coupled with the weakening pound following the Brexit vote, meant that the UK reference price continued to fall behind the EU price. As at week ended 24 July, the EU average price stands at just under 9p/kg more than the UK price, at 136.07p/kg.
Vikki Campbell, Senior Analyst
Vikki.Campbell@ahdb.org.uk, 024 7647 8741