The EU reference price for pigs has gained a massive 18p in the space of just four weeks, providing strong support for UK pig prices.
The EU reference price, which covers the major pig producing countries, stood at 195.44p/kg for the week ending February 19, following these gains,
In comparison, despite a steady rise in the SPP in recent weeks, the UK reference price has remained relatively steady over the four-week period, seeing an increase of just over 1p to stand at 206.51p/kg for the week ending 19 Feb.
That puts the gap between the UK and EU reference prices at just 11p, which is low by historic standards and down from a gap of nearly 30p in late-January.
“Looking at historical trends, EU pig prices typically see an uplift as spring approaches,” said AHDB analyst Freya Shuttleworth. “Reports of tight supply in slaughter-ready pigs on the continent have likely brought forward this price rise by a few weeks as processors try to match supply with demand.”
Several key EU pig producers are now recording their highest prices on records, following significant price increases seen across the board in the four weeks ending February 19.
The Netherlands has seen the largest increase over the period, up almost 29p to sit at 180.73p/kg for the week ending February 19, while Germany has also seen prices rise by well over 20p to stand at 207.01p/kg in the same week, 0.50p higher than the UK reference price. France and Spain have seen prices increase by 20p to 196.70p/kg and 15p to 191.98p/kg respectively.
The big exception is Denmark. Danish pigs have seen a price decrease of 4p over the period, although there was a small uptick in the final week bringing the price to 151.56p/kg. This is the lowest price of the key producers by nearly 30p.