Pig prices drop to 217p/kg as throughputs rise

Finished deadweight pig prices have fallen by 8.5p/kg since peaking in mid-August and the standard pig price is currently at its lowest level since April.

Demand remains fairly steady, both in the domestic market and on the Continent, with further pressure being added by increased supply and imports.

Volumes of pork sold at retail have dropped almost 3% during the past 12 months, while average retail prices increased by 12.2%.

See also: Pig producers feel pinch as prices drop below 220p/kg

Finished pig prices in the UK continue to follow trends in the EU market, which has seen even greater declines, falling by the equivalent of 30p/kg since July to €211.75/100kg (184.9p/kg).

Scottish pig producer group Scotlean reported there had been a steady market decline this week.

Scotlean said: “Most of the European markets have been unmoved. There was a small drop in France this week, but small increases in Denmark and Belgium.

“There is still a good amount of European pork coming into the UK and, with Christmas just round the corner, we need to capitalise on getting as many pigs away into the marketplace as we possibly can.”

Supply

Meanwhile, supply remains strong with throughputs at GB abattoirs increasing on the week.

Defra data showed clean pig slaughterings in October were up 8% on month-earlier levels at 882,000 head, but still down on the year.

Thames Valley Cambac suggested that minor issues at hauliers and abattoirs had caused a few temporary delays, but larger kills for Christmas seemed to be clearing these up.

Average carcass weights have pushed back above 90kg for the first time in more than a year, which may be a slight cause for concern if weights remain high.

Despite these issues, producers still remain in a much better position than this time last year, when the industry was in the middle of a long period of losses.

Finished pig prices are up by 17p/kg compared with November 2022, and cost of production is also lower year on year.

In the third quarter of 2023, producers were estimated to have a positive margin of £25 for each slaughter pig, compared with the same period in 2022, when producers were losing about £23 a pig.