Further EU pig price drop
EU pig prices have significantly fallen since the beginning of January. The EU reference price had been continually declining up to the most recent week ending 4 February, when prices actually saw some recovery and rose slightly.
Over the past five weeks, prices declined by €5.41 to €134.26/100kg in the week ended 4 February, however, a rise of €0.56/100kg on the week was recorded. Prices were increasing for the equivalent period last year, so the gap between this year’s and last year’s prices has widened over the period. For the most recent week prices are over €18 below this time last year. This downward pressure on price is indicative of supplies above year earlier levels which not being matched by demand growth.
Looking at member states individually, most recorded significant price falls in all but the most recent week. The German reference price stood at €135.67/100kg in the week ending 4 February, which is €5.62 below five weeks earlier but a €1.33/100kg rise on the week. Other major producers also recorded significant drops in price over the period, including Denmark, France and the Netherlands. However, smaller reference price falls were recorded in Spain, falling by €2.59 over the past five weeks to €122.36/100kg.
In euro terms, the UK reference price declined on a smaller scale this year compared to the EU average, helped by some strengthening of the pound. The UK reference price fell by a more modest €2.62 to €165.50/100kg for the week ended 4 February. This meant that the gap between the UK and EU reference price continued to widen. In sterling terms, the UK price stood more than 27p above the EU average at 145.25p/kg for the week ended 4 February. However, compared to the same week in 2016, the price is 2% behind year earlier levels.
Abigail Schofield, Trainee Analyst
Abigail.Schofield@ahdb.org.uk, 024 7647 8610