Pig price back to 2010 level, but costs way ahead

The GB Euro Deadweight Adjusted Pig Price (DAPP) put on another 1.81p/kg this week to stand at 144.78p/kg, writes FW commentator Peter Crichton.

This is identical to its value 12 months ago when feed wheat traded at £99.80/t compared with £190/t today.

Recent statistics published by the National Pig Association (NPA) have indicated that current pig production costs are equivalent to 164p/kg deadweight compared with net producer returns in the region of 141p/kg deadweight.

This translates to a loss of around £18/pig, although recent reports of slight falls on the futures wheat market and rises in pig prices may help to reduce this gap to some extent.

Weekly contract prices paid by Tulip, Vion, Woodheads and Cranswick moved up by 2–2.5p/kg and now average 150.75p/kg. Spot bacon quotes are between 156p – 160p/kg, earning producers a significant premium over and above equivalent contract prices for the time being.

European pigmeat values have however eased due to stocks being unloaded from Private Storage Aid (PSA) cold stores and as a result cull sow values have dropped by between 6–8p/kg with bids generally in the 102–104p/kg range according to specification.

The latest Agriculture and Horticulture Development Board (AHDB) 30kg weaner average continues to gain ground and is now quoted at £45.19/head, but still has to make further progress before weaner producers are in the black.

Pigs still remain the poor relations of cattle and sheep in the retail sector and further price recoveries will be needed to redress the balance in pig producers’ favour.