Pig prices under pressure across Europe
Last year did not end well for European pig producers, with declines in the EU average reference price.
In each of the four weeks to 31 December 2017 EU pig prices dropped, to close the year at €139.67/100kg, a €5.76/100kg fall over the given period. The New Year has brought some stability, in the most recent week ended 7 January prices averaged at €139.51/100kg. Although these seasonal price pressures are typical for this time of the year with a large supply and a repressed demand the prices are down €12.37 on the equivalent week last year.
At country level, price deflation was seen across almost all member states, recording continual price drops over the past few weeks. The German pig price recorded one of the largest declines, standing at €8.39/100kg lower than the 4 weeks prior to the week ending 7 January 2018. Denmark recorded a price fall of €7.31/100kg. In contrast, other major producers recorded much less drastic declines over this period including France (€4/100kg) and Spain (€1.15/100kg).
The trend for the UK was in line with the EU pig price movements, also falling successively over the past four weeks. The UK pig price fell less than the average to €167.94/100kgfor the week ended 7 January 2018. As such, the gap between the UK and EU average reference price has widened to around to €28.45/100kg for the past two weeks, the largest gap since the same period in 2016. In sterling terms, the fall in pig prices is lessened by the weakening of the pound against the euro. At 148.38p/kg for week ended 7 January 2018, the UK price currently stands at around 25p above the EU average.
Abigail Schofield, Trainee Analyst
Abigail.Schofield@ahdb.org.uk, 024 7647 8610