Lack of supply pushes pig prices to new record highs
© Tim Scrivener Pig prices continue to reach new all-time highs – currently standing 26% higher than this time last year – supported by tight supplies both in the domestic market and on the Continent.
Falling feed costs are also offering a better return for producers following a two-year period of losses.
See also: Dearer sows offer way out with 230p/kg costs
The EU-spec standard pig price has increased by 18p/kg since the beginning of the year and hit the record value of 218.22p/kg deadweight in the week to 22 April.
Pig numbers
Pig producer group Scotlean said numbers still remain very tight and look as if they will be for the foreseeable future.
There are several reports of processors even cutting back on kill days in the short term due to a lack of supply.
In March, UK clean pig slaughterings were down 15% compared with March 2022 levels, according to Defra figures. Early estimates for April have been at the lowest weekly levels so far this year.
A lack of availability of finished pigs stems from a contraction in the breeding herd. Sow numbers have fallen sharply, with the UK female breeding pig herd dropping 14% in 2022 to 343,000 head.
Scotland
Andy McGowan, managing director at Scottish Pig Producers, told Farmers Weekly the situation in Scotland was similar, with tight supply.
Scotland is about 25% self-sufficient for pork, has a more integrated pork supply chain, and producers are very dependent on the Brechin abattoir, he said.
Mr McGowan hopes government will implement import controls as planned later this year to make the UK more competitive against European imports.
“Exports have had about 6% extra costs added to them for the past few years, while imports haven’t, so those controls can’t come soon enough. Not to mention the risks from African swine fever.”
Mr McGowan said although some feed costs had returned to more normal levels, energy and soy prices were still a concern.
Ireland
In Ireland, pig production is forecast to fall by 8.5% during 2023, according to the Irish Farmers Association (IFA).
The IFA said pig prices in Europe were significantly ahead of the average Irish price.
IFA pig committee chairman Roy Gallie said: “We are calling on the processors to increase pig prices for next week’s pigs, as we must bridge this gap to ensure a sustainable future for the industry.”
Europe
EU pig prices averaged €237.68/100kg (209p/kg) deadweight for the week ending 16 April.
Higher prices are making exports less competitive globally, with 2022 EU exports declining by 16% and expected to drop by a further 3% in 2023.
There has also been less demand from China as it rebuilds its own domestic pig herd. However, exports have grown to other Asian markets such as Japan, the Philippines and South Korea.
The number of breeding sows dropped by 500,000 head in the EU during 2022, down 4.6%.
The EU Commission spring 2023 short-term outlook said EU pigmeat imports from the UK increased by almost 28% in 2022, representing a bit less than 85% of total EU imports.
In Denmark, major processor Danish Crown is due to close one of its six abattoirs, resulting in 800 job losses.
The processor said the number of pigs supplied for slaughter in Denmark on a weekly basis had declined by more than 10% during the past year.