EU pig prices still rising, but UK closes gap
In the four weeks ended 22 September, EU pig prices continued to rise overall. Although, performances differed between countries somewhat.
In the latest week, the average price across the EU was €182.10/100kg, about €1.40 higher than at the end of August. Over the same period, the UK reference price rose by nearly €5, although it remained at a discount to the EU, at €173.61/100kg. The increase primarily reflects some strengthening in the value of the pound.
Lower EU production, despite widespread weak demand within Europe, is behind the continued strength in EU pig prices. Increasing import demand from Asia also provides some support. Nonetheless, altogether, processor margins have been put under pressure and this may dampen future price rises to a degree.
The fortunes producers have been more positive. For example, in Germany, report suggest both breeders and finishers have been in profit since April. It is too soon to say whether this will halt the decline in the German herd, and production, which has underpinned so much of the price rises this year.
Reference prices in selected key Member States moved as follows in the four weeks to 22 September:
- Belgium: -€4.70 to €155.20/100kg
- Denmark: +€3.91 to €176.64/100kg
- France: +€11.00 to €180.00/100kg
- Germany: -€0.85 to €190.30/100kg
- Netherlands: +€0.29 to €172.17/100kg
- Poland: +€0.42 to €178.80/100kg
- Spain: +€2.00 to €181.37/100kg
- UK: +€4.91 to €173.61/100kg