Promising signs for pig producers with uplift in EU market

Tighter supplies and improved demand in Europe may help to lift UK finished pig values, after several months of idle prices.

Industry reports suggest that demand is improving both in the UK and on the Continent, while pigs remain in short supply.

Processors continue to hold prices where possible; however, if concerns of potential shortages materialise, they may be forced to pay more.

See also: UK finished pig prices stabilise at 211p/kg amid tight supply

Quality Meat Scotland (QMS) market intelligence manager Iain Macdonald said sow numbers in England were still 19% lower than in December 2021, leaving little room for any significant rebound in prime pig slaughter in 2024.

He added that, although the number of finished pigs in Scotland rose by 14% during the first two months of 2024 from the lows of 2023, they remained below 2022 levels.

A smaller breeding herd in the UK and tighter pig numbers have been supporting prices, but have also led to an increase in pork imports from the EU.

Mr McDonald said: “After six months trading at a small discount of only around 5% to GB levels, EU pigs became relatively cheap in the second half of 2023 and the price gap widened beyond 20% in early 2024.

“However, there has been a strong seasonal rebound in the EU since February, and the price gap dipped to 13% in the third week of March.

Prices in the EU were the equivalent to 186.7p/kg for E grade pigs on 24 March, while the comparative UK price was at 208.6p/kg.

He added that the number of sows in the EU were still 7% below pre-Covid levels.

“In addition, fattening pigs were still showing a year-on-year decline of 2.4%, highlighting that, like at home, any recovery in EU pork production is likely to be weak.”