November 2, 2009

UK pig prices are continuing to fall, according to producers, who fear the tumbling daily average price (DAPP) could soon see returns below the cost of production.

The National Pig Association (NPA) is continuing to pressure retailers for greater support to home production but despite this, prices fell another GBP0.02 to just a GBP1.40 a kilogramme, down from GBP1.56 in September.

An industry insider said producers are fearful the DAPP will fall another GBP0.02-GBP0.03 and, by mid-November, it could be as low as GBP1.35 per kilogramme. A bigger fear is that it could fall below the cost of production again, which is around GBP1.33 per kilogramme, back to where it was a year ago.

The NPA is continuing to pressure retailers to pledge greater support to British Quality Standard pork, with both Tesco and Sainsbury's promising to increase efforts.

According to NPA, for the four weeks to October 4, volume sales of pork in Morrisons had grown by 45 percent, the Co-operative 40 percent and Waitrose 15 percent, compared with overall market figures of 7.7 percent for volume for the 52 weeks to October 4.

US$1 = GBP0.606 (Nov 2)