EU pig prices record a slight fall
Pig prices in the EU have fallen slightly over the past few weeks, following a short period of stability.
The latest average pig price, for week ended 6 March, was €124.50 per 100kg. This recorded price is lower than the pre-Private Storage Aid (PSA) level and has led to cries from several member states to reopen the PSA scheme amid concerns that the stabilising effect it had on prices has been short-lived. With prices returning to their lowest levels for eleven years, EU producers remain under considerable financial pressure. However, there have been reports that demand is beginning to be stimulated in the run up to Easter, notably in Germany, due to low prices. With the German market being a major signpost for the EU price, there are hopes that this will stimulate the EU price in a positive direction.
In sterling terms, the fall in EU pig prices has been softened slightly due to the weakening of the pound against the euro. The latest price equivalent is 96.9p/kg, which, although it has fallen slightly over the last few weeks, has not returned to pre-PSA levels. The gap between the EU and UK price has risen slightly, to just over 13p/kg (week ending 6 March 2016), following a drop to 12p the previous week. However, these differences are the lowest since October 2013 and could potentially support prices on the domestic market by reducing the pressure from imported pork.
The fall in EU pig prices was largely driven by decreases seen in the German and Spanish prices. The Dutch and Belgian quotes also recorded small falls, while the Danish price largely stood on for the 11th consecutive week. Of the major pig producing member states, only France saw price increases, albeit modest ones.
Vikki Campbell, Senior Analyst
vikki.Campbell@ahdb.org.uk, 024 7647 8741