September 10, 2009

UK pork prices have benefited from a combination of lower slaughterings in the first half of the year, less competitive imports and better than expected consumer demand, according to the latest market update from BPEX.

While deadweight prices have slipped since their record peak of GBP155.6/kg in mid-July, latest figures still put the DAPP (Deadweight Average Pig Price) at GBP152/kg - a 12 percent premium to this time last year.

Clean pig slaughterings were 3-percent down in the first six months of the year compared with the same period of 2008 at 4.4 million - equivalent to about 169,000 a week. Carcass weights were "unusually steady" at about 78kg.

The weakness of sterling also made imported pork more expensive in the first part of the year and, while it has since strengthened, pork imports so far this year are 12-percent lower, partly due to a contraction in Danish production.

In contrast, bacon imports have grown this year, as consumer demand has held up strongly.

The downturn in prices in recent weeks mirrors last year's trend, with EBLEX pointing to the impact of the poor summer weather on barbecue activity, and an increase in weekly slaughterings in August to 180,000, compared with 177,000 in June and July.

Weaner values have also dropped since mid-July, but the cull sow trade is stronger due to the lack of supplies coming forward.