November 3, 2010

Pig prices drop by 9% across Europe

Europe's pig prices have fallen sharply by 9% in eight weeks since the end of August, increasing pressure on producers, according to the latest EU Market Survey produced by the AHDB Market Intelligence section.

Although pig slaughterings have been higher this year, the market has been less firm than during 2009. Prices for piglets have also fallen sharply as finishers look to pay less for them in order to offset increased feed costs. The depreciation of sterling contributed to the UK pig reference price declining by as much as 11% in euro terms, although the reduction in sterling was just 4%.

The British Pig Executive (BPEX) also pointed out that the increased value of the euro against the US dollar and a recent easing back in demand is now having an adverse effect on EU pig meat trade with third countries, in particular Russia and Japan.

Meanwhile, UK pork exports are still rising with volumes to end of August up by 28% to 80,944 tonnes, according to BPEX's latest Export Bulletin.

A quarter of UK exports went to Germany, 22% to the Netherlands and 21% to the Republic of Ireland. The 120,000 tonnes export marks is now on course to be beaten this year.