October 15, 2003

Lower EU Pig Prices For Week Ending October 10

Lower EU pig prices have failed to knock UK markets over the past week. Traders reported a relatively firm demand on Friday (October 10).

Danish, French, Spanish and Dutch pig producers are receiving between 77p and 85p/kg, coupled with comparatively low transport costs will pose a real threat to the UK industry.

At the same time producers have to face rising feed costs as a result of the heatwave this summer.

Cereal prices have risen by over 50%, adding 6-8p/kg d/wt to production costs on a 12-month basis. 

Protein prices have also moved ahead, with soya trading at 178 sterling pound /t for January and fishmeal at 495 sterling pound/t. 

But despite weaker EU pig prices firm demand boosted UK baconers to almost 110p/kg last Friday.

This will be reflected in future calculations of the UK Adjusted Euro-Spec Average and Deadweight All Pigs Price, which only rose by 0.7p/kg last week to 100.23p/kg and 100.63p, respectively.

Lighter weights continued to attract a reasonable premium, with cutters traded at 111-115p/kg. 

Weaker EU markets have knocked cull sow prices by a few pence despite the firmer Euro, to 64-68p/kg.