Tighter margins for pig producers as prices drop to 208p/kg

The tide has turned following a summer of support for domestic pig markets, with sluggish EU demand and ample pork supplies currently weighing on domestic pig markets.

Average finished pig prices have fallen each week consecutively for the past six weeks to stand at £207.6p/kg on 19 October.

A lull in demand during the autumn has played its part with some processors announcing further price cuts of up to 2p/kg this week.

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

However, industry forecasts suggest that demand should pick up slightly in the build up to Christmas, especially for cuts such as gammon, bacon and sausages.

GB weekly pig slaughterings have largely trended up above last year’s levels throughout 2024 and throughput volumes increased further in October.

In Europe, the average EU pigmeat price fell by 2.5% during October to 203 eurocents a kg, down by 6.1% on the same week last year.

Exports from the EU to its largest export destination, China, were down by 8.5% during the first seven months of the year, with ongoing trade disputes likely to mean export volumes continue to remain low.

Andy McGowan, managing director of Scottish Pig Producers said markets were not looking quite as bright as they were during summer, with the European market struggling in particular,  undermining the UK price.

He said: “It’s this time of year when there are a few more pigs around so ample supply coming into a market that is already a bit underwhelming is probably putting a bit of downwards pressure on things.

“It’s been quite a sustained period this year with a positive margin for producers and although that’s coming under a bit of pressure now it has been relatively decent.”

He added that lower grain costs and soya regulation being postponed for a further year had helped to keep feed costs down on farm, which had partially offset the falling finished prices.

Higher carcass weights

Slaughter weights for pigs lifted to 92kg during October, the highest average weight since the backlogs of 2022.

Mr McGowan said this could be an indication that additional pigs are no longer being taken by processors, whereas earlier in the summer processors were actively looking for extra pigs.

However, he added that compared to a few years ago the increase in weight remained relatively small.

Imports

UK pork imports lifted slightly during the first eight months of trade with both value and volume up on the year.

Pig producer group Scotlean warned there were concerns currently over volumes of imports coming into the UK and the pressure it was putting on the supply base.

The National Pig Association (NPA) recently met with Baroness Hayman to discuss the risk of disease of disease from illegal personal pork imports.

NPA chief executive Lizzie Wilson said: “Despite our positive engagement, we continued to push for a fresh funding settlement for Dover Port Health Authority.

“Without sufficient resources, the current seizures at the border will stop and the UK will be extremely vulnerable to biosecurity and notifiable disease threats like African swine fever and foot and mouth.”