Pig Meat Market

The latest figures from AHDB Pork show GB finished pig prices continue their downward trend.  Prices have generally been in decline since the end of August.  The GB SPP (UK spec) for the w/e 14^th November was 124.19p per kg deadweight; a slight rise on week earlier levels but still 20.05p per kg below 2014 prices and about 6p per kg less than at the end of September.  As supplies continue to be plentiful, downward pressure will remain on farmgate prices unless there is an increase in demand in the run up to Christmas.  Latest figures show the number of clean pigs killed in October is the highest since 2000 at 1.09 million.  This indicates that the productivity of the UK herd has increased as the number of breeding sows is thought to have remained relatively level.  The ongoing weakness of the EU market and the strong Pound against the Euro also continue to keep domestic prices weak.

The fall in farmgate prices means the producers’ share of the retail price in October fell to its lowest since 2004, at just 34%.  Retail pig prices actually increased in October, albeit by only half a pence, but at the same time farmgate prices have been falling.  The retail price in October was about 1% less than year earlier levels, compared to farmgate prices which were about 16% less than those received in October 2014.