EU pig prices seek direction

After sharp rises earlier in the year, EU deadweight pig prices have been relatively stable of late. In particular, prices in Spain continue to show underlying strength, despite being the market where production has continued to grow.

In the week ending 19 June, the pig price in Spain had reached €212.26/100kg, a rise of more than nearly €2.50 compared to four weeks before (and equivalent to 182.04p, slightly below the UK reference price at 186.15p/kg). Prices in Germany, which arguably dominates the EU market overall, have been stable at around €188/100kg. Finished pig prices in Denmark have fallen by €10 in the past four weeks to €168.17/100kg. The EU average reference price has risen by €1.42 to €187.32/100kg (equivalent to 160.66p/kg).

The pound has broadly been weakening against the euro in recent months, which - all other things being equal - would have further contributed to the increased price of imported pork into the UK this year.

Wheat prices have fallen in recent days, although not to the point where they would indicate that pig prices again cover the estimated cost of production. As an extremely rough rule of thumb, the pig to feed wheat price ratio (feed wheat as a percentage of the pig price, each in its own units) needs to be nearer 10 for that to be the case; it is currently above 15.

According to market analysts AMI, the short-term supply of pigs in Germany is tightening slightly but is matched by cooler demand from slaughterhouses. Although demand for barbeque items is picking up in the warmer weather, demand overall appears to be lower than pre-pandemic levels, and is met by available supplies of product.

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