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EU pig prices rising on the back of tighter demand

Alistair DriverBy Alistair DriverAugust 25, 20222 Mins Read
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European pig prices have strengthened significantly over the past few weeks, despite weakening demand, as supplies tighten.  

In the four weeks ending 14 August, EU deadweight pig prices have generally increased with the exception of Spain, with prices continuing to rise across Europe, including notably in Germany last week.

“Demand has continued to be weaker although is starting to show some signs of picking up as the summer holiday period nears its end. This lower level of demand has been matched by reduced slaughter throughputs according to AMI, with some regional variation,” AHDB analyst Freya Shuttleworth said.

Graph showing the difference in EU pig reference prices across Europe including the UK

French pig prices have seen the largest increase over the last four weeks up €7.00, to stand at €203.00/100kg in the week ending August 14, closely followed by Germany, where prices increased €5.70 to €198.54/100kg.

These are equivalent to 171.55p/kg and 167.79p/kg respectively using current exchange rates, meaning French and German prices were 30p below the UK price of 197.88p/kg. Pig prices in the Netherlands and Denmark were both at a discount of 25p/kg to the French price in the week ending August 14 and 50p/kg below the UK price.

However, pig prices in Spain dropped by €9.27 to €208.68 over the four weeks, equivalent to 176.35p/kg, 20p/kg below the UK average. Spanish prices had been tracking UK prices at the end of June but have now significantly dropped off whilst UK prices continue to increase. It was reported that the Spanish pork industry is struggling to keep up with the evolution of the global market and lowered demand from China.

However, sterling has strengthened against the Euro over the last 4 weeks, which has served to make imports from the EU more competitive, and conversely, increase the price of exports to the EU.

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Alistair Driver

Editor Pig World, group editor Agronomist and Arable Farmer and Farm Contractor. National Pig Association webmaster. Former political editor at Farmers Guardian. Occasional media pundit. Brought up on a Leicestershire farm. Works from a shed in his Oxfordshire garden.

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