October 15, 2003
Lower EU Pig Prices For Week Ending October 10
Lower EU pig prices have failed to knock UK markets over the past week. Traders reported a relatively firm demand on Friday (October 10).
Danish, French, Spanish and Dutch pig producers are receiving between 77p and 85p/kg, coupled with comparatively low transport costs will pose a real threat to the UK industry.
At the same time producers have to face rising feed costs as a result of the heatwave this summer.
Cereal prices have risen by over 50%, adding 6-8p/kg d/wt to production costs on a 12-month basis.
Protein prices have also moved ahead, with soya trading at 178 sterling pound /t for January and fishmeal at 495 sterling pound/t.
But despite weaker EU pig prices firm demand boosted UK baconers to almost 110p/kg last Friday.
This will be reflected in future calculations of the UK Adjusted Euro-Spec Average and Deadweight All Pigs Price, which only rose by 0.7p/kg last week to 100.23p/kg and 100.63p, respectively.
Lighter weights continued to attract a reasonable premium, with cutters traded at 111-115p/kg.
Weaker EU markets have knocked cull sow prices by a few pence despite the firmer Euro, to 64-68p/kg.
But short supply has boosted the weaner market, with the Meat and Livestock Commission's 30kg average at 34.03 sterling pound ex-farm.