EU pork prices strengthen on strong demands

Strong domestic demand for pork continues to boost prices, with the DAPP rising by 2p/kg over the past month, to 145.9p/kg in the week ending 29 May.

That is 8p/kg higher than the start of the year, but almost 7p/kg lower than the same week last year.

Pork exports in the first quarter of 2010 increased by 22% year-on-year, while imports fell by 9%, according to the Agriculture and Horticulture Development Board's latest market survey. However, importers were supplying higher value products like bacon and ham at the expense of the raw product.

EU prices have suffered due to weak demand this year, but a seasonal upturn boosted the EU pig reference price to EUR140.35 per 100kg in the week-ended 23 May. That was 7% higher than the start of the year but still 3% below last year.

Modest drops in feed prices have benefited EU producers, with average feed costs 7% lower in the first quarter of 2010 against 2009. However, given the ongoing low finished pig prices there has been no significant upturn in the profitability of EU pig production, according to the report.