April 5, 2011
 

UK pig prices progress

Prices of spot and contract pig have continued to progress over the past week, with the Deadweight Average Pig Price increasing from GBP135.60 (US$218.56) to GBP136.58/kg (US$220.14), according to the media.

Spot bacon was traded within a fairly wide range, reflecting something of a north/south divide, with quotes anywhere between GBP140-150/kg (US$225.65-241.77) according to region and specification. With soaring lamb and beef prices, all the signs are that pig values will continue to improve in the weeks ahead.

Further improvements in the value of the euro, which closed on April 1 worth GBP88.10 (US$142), have also boosted the cull sow market, where quotes of between GBP105-107/kg (US$169.24-172.46) deadweight are available. Better European demand has also helped.

However, the weaner market continues to reflect high cereal prices with the latest Agriculture and Horticulture Development Board (AHDB) 30 kilogrammes ex-farm average quoted at GBP41.43/head (US$66.77), well below producers' production costs.

Despite rising pig prices, most pig producers are still operating on negative margins, with feed wheat now quoted on an ex-farm basis at GBP194.50/tonne (US$313.50), over twice its value this time last year.