December 02, 2003

UK Pig Prices Tumble Due To Over Supply
 

Spot pig prices took a tumble at the end of last week in the United Kingdom (w/e November 28), with the leg market in particular being over supplied by imports.

EU pig values have fallen to an average of 78p/kg, undercutting GB prices by up to 25p/kg.

Although the Euro remains firm, closing at 69.7p on Friday, meat traders have been switching to imports in increasing numbers during the run up to Christmas.

The UK Adjusted Euro-Spec Average (AESA) and Euro Deadweight Average Pig Price (DAPP) continue to lag behind the physical market.

The AESA lost 0.54p/kg, to stand at 107.14p/kg, and the DAPP remained almost unchanged at 107.51p. In contrast, spot quotes fell by between 2p and 5p/kg.

Porkers and lightweight cutters slipped the least, with most traded at 110-114p/kg. Baconers fetched between 105p and 109p/kg in most regions.

The cull sow market also took a turn for the worse due to a number of German manufacturers already being fully supplied in the run up to Christmas.

Export abattoirs were paying 62-65p/kg in the main.

The Meat and Livestock Commission 30kg weaner price has weakened slightly, at £33.53/head ex-farm.

But spot traders have reported lower prices than this in some regions. This is due to higher feed costs and the indifferent outlook for finished pig returns in 10-12 weeks time.