Pig prices start to climb as EU market improves

Stagnant GB pig prices have held at about 210p/kg since the beginning of 2024, however uplifts in EU prices and increased domestic demand could help to provide some support later this summer.

The EU-spec standard pig price settled back to 210.16p/kg in the week to 8 June, while the all pig price dropped by 2p/kg on the week after making significant gains during May.

Finished pig prices are still back from the highs of 2023, however, currently remain above 2022 levels and well above the five-year average.

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Pig industry marketing group Scotlean reported that pig numbers have been meeting the required demand, although some processors would have taken more if pigs were available.

Demand at retail has been suppressed so far this year, but is likely to improve with processors reportedly looking to increase volumes and buyers actively seeking more pigs, as consumer demand for summer pork products picks up.

The margin per slaughter pig was estimated at £16 per head during the first quarter of the year, according to the AHDB, with cost of production equivalent to 194p/kg deadweight.

Global markets

Pig prices in the US have increased since the beginning of the year and are now back above prices in Canada and Brazil, but still below prices in the EU.

Average deadweight pig prices across the EU climbed to the equivalent of 188.3p/kg during the first week of June.

Production in the EU fell by 1.3% during the first quarter of 2024, with noticeable falls in some of the major pig producing countries such as Denmark, according to the EU Commission.

In Germany, a further case of African swine fever was confirmed last week on a pig farm close to the Polish border, which will impact German pork exports to certain destinations.

Roughly 3,500 pigs have been slaughtered on farm following the outbreak and further protection measures have been put in place locally.