October 8, 2003
Euro Fall Levels Out UK Pig Meat Values
The recent recovery in pig prices in UK has levelled out due to significant falls in pig meat values in other European countries.
The French market lost 8p/kg in the last week of September and Dutch and German sources are also reporting lower values.
EU prices increased 10% from August to mid-September, but almost half of that gain has since been wiped out.
The very hot weather during July and August caused pig growth rates to slow but the recent cooler weather has sparked a surge in growth.
This has put more pig meat on the market over a much shorter period.
But traders believe that once this mini glut of pigs is off the market prices will regain some stability.
And GB producers have been encouraged by recent improvements in the value of the Euro, which has strengthened back up to 70p over the past week.
Slaughter numbers in the UK remain very tight and despite the fall in European values most UK abattoirs had to increase their bids last week (w/e 3 October) to secure throughput.
The UK Adjusted Euro-Spec Average (AESA) and the Deadweight All Pigs Price (DAPP) also confirmed an upward trend, rising by 1.44p and 0.73p to 99.57p/kg and 99.76p/kg, respectively.
Most spot and contract bacon values also firmed, with offers in the 104-108p/kg ranges according to region and specification. Cutters enjoyed a 4-6p premium above this.
Weaner quotes are also reflecting a generally firmer outlook for finished pig values, with the Meat and Livestock Commission 30kg average rising to 33.49s terling pound/head ex-farm. Further price rises also seem to be on the way.
Cull sow values have slipped slightly in some regions due to weaker EU markets, with most export abattoirs quoting 66-70p/kg.