Comparing UK pig prices with competitors’ prices
Last month, we published analysis looking at how GB pig prices compare with the EU average price. However, in reality British pork is mainly competing with product from a smaller number of countries; three-quarters of UK imports come from just four, Denmark, the Netherlands, Germany and Ireland. So how do GB prices compare with these four countries?
The earlier analysis showed that the EU Commission’s reference prices, which normally form the basis of any comparison, overstate the price premium which domestic producers receive relative to their EU counterparts. The analysis estimated that for standard UK production (mostly indoors), the UK reference price should be reduced by between 5-6p/kg to provide a more valid like-for-like comparison.
Based on their respective reference prices, the GB premium over the four main suppliers of pork to the UK would be even larger than over the EU average, as they are close to or below the EU average.
However, new analysis suggests that prices are more consistent, and closer to the EU average, than the reference prices imply. This confirms that the adjusted premium for GB standard pigs over the EU average, described in the previous article, probably provides a realistic assessment of how British pig meat prices compare with its main domestic competitors.
To read more about the analysis, click here.
Stephen Howarth, Market Specialist Manager
Stephen.email@example.com, 024 7647 8856