Producer share of retail price rises once again in December
In December, farm gate prices increased for the tenth consecutive month to the highest level of the year.
This rise, combined with a smaller rise in the average retail price, led to the share of the retail price received by producers increasing to 40.4%. This remains the largest share received by producers since July 2014 and is nearly seven percentage points higher than December 2015 (33.6%). Increases in GB pig prices during December were responsible for the overall increase in producer’s share, with the EU-spec APP gaining 2.5p/kg on the month and 25.6p/kg on December 2015.
Despite the producers share of the retail price growing in recent months, for 2016 as a whole the share of retail price averaged 34.7%, on par with 2015. This was largely driven by farm gate prices hitting multiyear lows earlier on in the year.
Retail pork prices by cut in December recorded a combination of increases and decreases on the month. Boneless leg and loin steaks increased by 2% on November, while boneless shoulder rose by 1%. Fillet end leg, loin chops and minced pork all saw marginal price changes on the month. On the other hand, fillet of pork and diced pork both declined by 2% month on month and traditional pork sausages fell by 1%. Compared to December 2015, average retail prices showed greater variation. While fillet end leg was 6% more expensive in December 2016 compared to a year earlier, traditional pork sausages were 5% cheaper. Other cuts recorded more marginal movement’s year on year.
Millie Askew, Analyst
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