Producer share of retail price continues to fall
The share of the retail pork price received by producers fell again in February, despite already being at its lowest level in over a decade.
Farmgate pig prices continued to fall in February 2016, although the rate of decline has steadied of late, to average 116.66p/kg, the lowest level recorded since March 2008. This was a decline of almost 5p/kg from the previous month. However, over the same period, the average retail price increased by over 1%, leaving it at a similar level to a year earlier. The result of this was that the share of the retail price received by the producer fell again, to 30%, at a time where the percentage share was already at the lowest level seen for over a decade. Compared with the same period last year, the percentage share received by producers has fallen 6 percentage points.
There was a dichotomy in retail price movements by cut in February, according to the data collected by AHDB Market Intelligence. Boneless leg and boneless shoulder both saw increases of 3%, traditional pork sausage prices rose by 2% and fillet of pork and minced pork were up by 1%. Fillet end leg and loin steak prices largely stood on, while loin chops and diced pork both recorded price decreases, of 1% and 2% respectively. When compared with the same period a year earlier, fillet end leg and fillet of pork both showed a marked increase in the average retail price (of 9% and 7% respectively), while the largest decrease was recorded in the retail price of diced pork (-4%). With the exception of boneless leg, which has seen a year-on-year retail price increase of 5%, all other cuts recorded minor price decreases of no more than 2%, or largely stood on.
Vikki Campbell, Senior Analyst
vikki.Campbell@ahdb.org.uk, 024 7647 8741