Finished pig prices fall to almost £2/kg as numbers increase

Higher throughputs of pigs at UK abattoirs have put pressure on farmgate prices.

The EU-spec standard pig price (SPP) dropped to 204p/kg deadweight in January, roughly 8p/kg down on last year’s levels.

Matthew Banks, specialist at livestock marketing group Meadow Quality, said prices were coming under more pressure with processor contributions down by 1p/kg to 2p/kg in recent weeks and demand variable between locations.

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Tom Holliday, agricultural business consultant at Brown&Co, said pig prices decreased towards the end of last year and were down by 2.5p/kg on the previous quarter.

Mr Holliday said: “Pig meat in the UK experienced a 2.9% decrease in total purchased volumes compared to the same period last year.

“Pork has been the only UK red meat to have demand decline year-on-year.”

Supplies

UK clean pig slaughterings were up by 10% in December on the same month last year and early industry estimates suggest slaughterings have remained high throughout January.

However, despite finished pigs coming through in greater numbers, there are some longer term supply concerns amongst industry with the female breeding herd at its lowest level since records began more than 40 years ago.

In the last year alone, the female breeding herd contracted by 3% to 327,000 head.

UK pork import volumes were up marginally at 725,000t during the first 11 months of 2024, while export volumes fell by 1% to 273,000t.

A ban on livestock and meat imports from Germany following an outbreak of foot-and-mouth disease could curb imports moving forward.

Pig marketing group Scotlean says it might just help stabilise any fall in the finished pig price in the short term but generally demand appears to be steady.

Cost of production

Average cost of production for finished pigs ranged between 190p/kg and 195p/kg for most of 2024, leaving a fine margin for producers.

Historic figures show costs of production for the pork sector tend to be higher in Great Britain than across the EU.

The average GB production cost in 2023 for indoor pigs was 194p/kg, while the EU average was 5p/kg less at 189p/kg.

George Craddock, trainee analyst at the AHDB said: “Production costs [in 2023] either fell or remained stable and pig prices saw significant increases.

“However, challenges remained, particularly with rising energy and interest costs.

“Despite these pressures, the combination of higher prices and more stable or reduced costs contributed to an overall better year for the pig industry.”