EU pig prices stabilise in November
Having recorded sharp declines through September and October, pig prices finally stabilised in November, according to data from the European Commission.
In the week ended 2 December, the EU reference price averaged €135.57/100kg, down less than 50 eurocents since the start of November. The price is around €10 below the same week of 2017.
The recent stabilisation in the price could suggest that demand is showing signs of a seasonal uplift in the run up to Christmas. Indeed, Kantar data based on UK retail figures shows pork demand to be up 2.6% in the 12 weeks to 4 November.
Prices across the majority of EU have remained fairly stable. The prices in Germany and Netherlands have recorded little change over the past four weeks and as of the week ending 2 December, average €140.16/100kg and €121.20/100kg respectively. Meanwhile prices in Belgium and Denmark picked up a little during the last four weeks. Contrastingly, the price in Spain continued to fall slightly over the past four weeks, by €2.59, and currently stands at €127.43/100kg. The Spanish price is now below the Danish price.
The sustained low price in much of Europe has led to an increase of exports into the UK, as such the UK domestic price has continued to be pressured. In the week ended 2 December the UK price averaged €161.97/100kg. The difference between the EU and the UK price is just over €26. The gap has been narrowing slightly in the last couple of weeks as the UK domestic price falls. The pound has also been losing value over the euro slightly in the last couple of weeks amid Brexit uncertainty.
Tom Forshaw, Analyst
Tom.Forshaw@ahdb.org.uk, 024 7647 8647