We are urgently developing research requirements with other European laboratories to make sure we understand and the disease (Schmallenberg) better.Record pig prices, but weather hits demand
UK pig prices rose to their highest ever level in July. In the week ended July 18, the Deadweight Average Pig Price (DAPP) averaged 155.6p/kg – 15 per cent higher than a year earlier, and 1p more than in mid-June.
AHDB Meat Services says the previous record price was 155.1p, achieved in the week ended July 13, 1996, in the aftermath of BSE.
Although pig prices continued to increase, their upward growth has been losing momentum. Weekly abattoir throughputs have been increasing and the wide gap between home-killed and imported pig meat prices has also impacted on demand for British pigs.
DAPP-related contract prices have continued to increase, but there have been reports of some falls in spot prices, in part because of the impact of bad weather on barbecue demand.
Weaner prices have increased strongly since the beginning of the year, reaching a peak of £57.78 per head in the week ended July 4. They have subsequently fallen back slightly, reflecting both the steadier tone to the finished pig market as well as higher supplies.
Market forces
The 30kg weaner price averaged £56.68 in the week ended July 18. Sow prices recovered in July, reversing the weaker tone to the market seen in June and in the week ended July 11 they averaged 110p which was 1p up on the month.
The firmer finished pig prices have helped producers’ average net margins, which have benefited as well from lower feed prices.
AHDB says, based on its Pigplan results, average net margins were estimated to have moved from negative to positive in the autumn of 2008.
As pig prices have continued to increase this year, this has meant further progressive improvement during the first half of 2009.
The size of the breeding herd is expected to remain stable for the rest of 2009 and 2010.
AHDB suggests any immediate increase in the breeding herd will be temeperd by the industry’s previous extended period of losses and health problems.
Pig industry consultant and valuer Peter Crichton notes that, while there are no signs of pig numbers going up, some of the larger buyers who are buying pigs on DAPP related contracts, have cut their throughput.
This has resulted in extra pigs have coming onto the spot market at a time when there are fewer takers in this sector.
This time last year, however, the DAPP was at 136p level pegging with spot, but wheat was trading at £117/tonne ex farm, he says.
