Finished pigs back in profit and prices at new record highs

Deadweight pig prices have jumped up in the past week and have risen by more than 20p/kg since the beginning of the year.

Finished pig prices are now back above the cost of production after a very challenging two-year period for the sector, when producers were subject to a prolonged period of losses.

The EU-spec standard pig price (SPP) averaged a new all-time high of 224.17p/kg deadweight for the week ending 1 July, up by 1.32p/kg deadweight on the previous week and more than 30p/kg deadweight above the same week last year.

See also: Pig producers reach breakeven in 2023 as costs fall

Pig producer group Scotlean said the increase in the SPP was due to the reduced numbers of pigs coming forward, with tight supplies in recent weeks.

Processors continue to be keen to source more pigs, according to pig marketing group Thames Valley Cambac, with cooler weather encouraging a few more animals to be sold, but not enough to satisfy demand.

Prices on the Continent have also been higher, with the EU reference price up more than 2p/kg deadweight to average 213.8p/kg deadweight for the week ending 2 July.

Demand from Germany has reportedly remained firm for export trade.

Production in Europe has been contracting and EU pigmeat production is expected to decrease by another 5% in 2023, according to the EU Commission’s latest short-term agricultural outlook.

Lizzie Wilson, chief executive of the National Pig Association, said input costs have continued to fall, with feed prices really helping to reduce costs of production.

Wheat prices have been a little more volatile recently, however, due to concerns around the Ukrainian grain corridor, and other costs such as fuel and wider inflationary pressures are still having an impact.

“Although producers should now be making a profit, it will take some time to recoup the severe financial losses from the previous two years,” added Ms Wilson.

Abattoir closures

Black Brow abattoir in Cumbria has decided to cease trading and close its site following a turbulent time for the pig industry and the abattoir is now on the market as a going concern.

This news follows on from the closure of Pilgrim’s UK site at Ashton-Under-Lyne and creates further concerns for the wider pig sector.