SPP drops below previous year

Wednesday, 28 October 2020

By Felicity Rusk

The EU-spec SPP has continued to decline in the week ending 24 October. Prices dropped back by 1.03p on the previous week, to stand at 156.61p/kg. This decline puts prices 0.18p below the same week in the previous year. This is the first year-on-year decline the series has recorded since June 2019.

Estimated slaughter picked up on the week, increasing by 2,100 head (1.2%) to total 183,500 head. Industry reports suggest that a number of major processors have had challenges due to staff absenteeism as a result of the pandemic as well as factory breakdowns. A number of pigs were reported to have been rolled into the current week.

Carcase weights were on average 160g heavier compared to the previous week, at 86.78kg. Weights continue to track well above the previous year (+1.57kg) and the 5-year average (+2.78kg).

In the week ending 17 October, the EU-spec APP fell by just under 0.6p, to stand at 161.50p/kg. While the SPP also declined in the same week, the size of the drop was considerably smaller. As such, the difference between the two measures narrowed to 3.86p.

Markets for 30kg stores dropped back considerably in the week ending 24 October. Prices fell by over £2.70 to average £54.23/head. This is over £8 below where prices stood 4-weeks previous, though it is not uncommon to see volatility in weaner prices due to variation in the mix of pigs in the sample. Unfortunately, there was insufficient data available to produce a 7kg weaner price this week. 

Felicity Rusk

Analyst - Livestock

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