Pig prices slip back below 210p/kg after months of stability

Finished pig prices have fallen to 208p/kg in October after holding at above 210p/kg for most of the past two years.

The downwards price move has been driven by a greater number of pigs being finished on farm with UK clean pig slaughterings at 855,000 head in September, up by 5.2% compared with the same month last year.

Meanwhile, the AHDB has forecast overall clean pig throughputs in 2024 to increase by 1.5% and total 10.2m head.

See also: UK pig prices stay near 210p/kg despite global trade turmoil

Demand both in the UK and the EU, however, has been fairly weak, with processors saying there has been limited interest at retail.

Producers are still making a small margin at current prices, with the cost of production estimated at 195p/kg deadweight during the summer months.

However, many businesses are still paying off large debts following a sustained period of losses for the sector throughout 2021 and 2022.

Europe

GB prices have continued to trade at a premium to the EU, which linked with a stronger sterling has led to more competition from pork imports.

The EU Commission short-term outlook showed that EU pigmeat production was up by 1.7% during the first half of 2024 on year earlier levels.

Analysts at the EU Commission suggested the increase in EU supply combined with limited demand had led to the decline in domestic prices from May onwards.

Traders at Scottish pig producer group Scotlean said pig prices in the EU had fallen, especially in Ireland, Spain and France, and that may continue as more pigs come forward while demand remains poor.

EU per capita consumption is forecast to decline by 0.4% year-on-year and then stabilise at 30.9kg in 2025.