Pig prices holding steady
In the week ending 23 June, the EU-spec SPP remained largely unchanged compared to the previous week.
Reported at 150.03p/kg, the price was just 0.04p/kg less than the week before. However, the measure remains 12.25p/kg below year earlier levels. Industry reports suggest that demand is not as strong as expected for the time of year, particularly considering the recent spell of good weather being experienced in the UK. With the difference between UK and EU pig prices remaining over 20p/kg since the start of May, competition from imported produce has likely risen.
Supply remained reasonably tight, with GB estimated slaughterings falling 4.6% week-on-week (7,800 head) to total 161,900 head. This estimate is also 2.5% below the previous year. Meanwhile, average carcase weights were up 240g on the week to 83.03kg, which is also 450g above year earlier levels. Following from the current CO2 shortage being experienced in Europe, it remains to be seen if there will be limitations on production in the coming weeks.
The EU-spec APP rose by 0.47p/kg in the week ending 16 June, to 152.90p/kg. This was slightly less of a rise than the SPP in the corresponding week. The price differential between the APP and the SPP therefore narrowed slightly, to 2.83p/kg.
7kg weaner prices dropped, by 87p, to stand at £37.25/head for the week ending 23 June. This is £7.12/head lower than the equivalent week last year, with higher feed prices possibly limiting the weaner price level. There is no 30kg weaner price for the same week, due to insufficient data to enable a representative price to be produced.
Tom Forshaw, Analyst
Tom.Forshaw@ahdb.org.uk, 024 7647 8647