Welcome jump in pig prices for farmers
© Tim Scrivener Pig prices recorded the largest weekly increase on record last week.
The EU-spec standard pig price (SPP) rose by more than 7p/kg on the previous week to 157.73p/kg in the week ending 9 April, according to the AHDB.
Prices are up by almost 20p/kg on month-earlier levels and are more than 15p/kg higher than the same week last year, having risen for the past seven consecutive weeks.
See also: Pig producers aim for more control of prices and supply chain
Morrisons’ recent 30p/kg increase in its contribution price for pigs is likely to be offering some support to prices as it feeds into the SPP, which is an average for GB standard pigs sold.
This excludes those that have received a premium for the breed, production system, or feed regime.
How prices on contracts are calculated varies between processors, with some based entirely on the SPP, while other contracts are based on the SPP, tribune price and contribution price, each accounting for one-third of the price respectively.
Costs of production
Current costs of production have been estimated by the AHDB at about 203p/kg to 216p/kg, with feed costs accounting for 70% of total costs.
Based on these figures, producers are reportedly losing in the region of £46-£61 a pig.
The National Pig Association said the pig price needs to increase much more to enable producers to remain in business and that fears of a mass exodus have not yet been averted.
Carol Davis, lead analyst farm economics at the AHDB, said: “Some producers have already decided to either significantly reduce stock or stop pig production.
“This will be driven by the individual farm situation and resources, including the significance of pig production at a total farm level and whether they have other enterprises or diversification.
“This could lead to short- or long-term supply issues for UK-produced pork.”
Throughputs
AHDB estimated slaughterings increased by 5,000 pigs on the week, at 203,000 pigs.
Increased throughputs should help towards clearing some of the remaining backlogs of pigs on farm if it remains, however this is likely to take time.
Average carcass weights dropped by 0.58kg to 93.17kg a pig but remain up on previous years with more heavier pigs still in the sample.