EU sow prices decline
Since November 2016, in general EU sow prices had been rising, however over the past few weeks values have been declining and generally by a larger amount than for clean pigs.
The fall in EU sow prices reflects the trend in finished pig prices currently, which are being weighed down by a slight rise in supply while export demand has been slackening. Since the start of May the German M1 sow price has fallen by €0.20 to €1.32/kg in the week ending 30 July, the lowest price for this series since the start of 2017. This decline is greater than that recorded in the German clean pig market, suggesting the demand for sow meat has weakened over the past few weeks. This is in spite of German sow slaughterings being down almost 10% on last year in the last three months.
Danish and Dutch sow prices have declined by €0.16 and €0.21 respectively over the same time frame, to €1/kg and €1.31/kg respectively. French values also slipped with the sow price in the week ending 6 August €0.17 less than the start of May, at €1.18/kg.
From a UK perspective, sow prices are also reportedly under pressure as the weakening in German sow meat demand will have weighed on domestic prices with Germany the top destination for UK sow meat. Looking ahead, if there is some seasonal weakening in the EU sow price during the autumn this could put further pressure on the UK sow market.
Millie Askew, Senior Analyst
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