May 7, 2004
New Markets Hurt EU Pig Values
Cull sow values have dived, due to large volumes of meat hitting the German and Dutch markets from new EU member countries.
UK export prices have fallen by about £20/head since late march, down from 73-76p/kg to 60-63p/kg presently.
Values remain influenced by the weak Euro, which was at 67.3p this week commencing May 3. This is in comparison with 70p at the start of the year.
The GB Euro Deadweight Average Pig Price (DAPP) has also run out of steam, rising by just 0.13p/kg in the week ending April 24, to 109.45p/kg.
Moreover, Weaner prices have lost ground to the high feed costs and the indifferent outlook for finished pig prices in 12 weeks' time.
The Meat and Livestock Commission's 30kg weaner average fell again last week (ending April 30), to £35.20/head ex-farm, with traders reporting lacklustre demand.
Furthermore, pig finishers are reporting high mortality because of ongoing problems with post-weaning multisystemic wasting syndrome (PMWS).
Traders believe high carcass disposal costs is another reason why weaner prices are sliding.