According to figures by the Agriculture and Horticulture Development Board (AHDB), the ongoing labour shortages have had a knock-on effect on the rate of slaughterings and carcase weights.
Around 70,000 pigs have been backed up on farms due to the workforce shortages, the National Pig Association (NPA) has estimated. The association have also predicted that this figure is increasing at roughly 15,000 per week.
AHDB’s latest market update showed that pig slaughterings for the week commencing 23rd August were down by 24,000 head on last year. Slaughterings of finished pigs at GB abattoirs in the week ending 28th August totalled 158,300, down 1,700 on the previous week. This was also a 13% decrease on a year ago, and 10% below the five-year average.
Meanwhile, carcase weights have increased and pig prices have fallen.
AHDB found that average carcase weights, which topped 90kg during the last backlog over the first two months of this year, are growing rapidly, reaching 88.40kg for the week. This makes the carcases 1.19kg heavier than the week before, and 3.2kg heavier than a year ago.
According to the update, costs of production remain high. Pig producers recorded average losses of £24/pig during the second quarter of this year, only a marginal improvement on the £26/head during the first quarter.
The EU-spec SPP fell 0.55p to average 158.70p/kg, putting it 5.69p above the five-year average. In the week ending 21st August, the EU-spec APP slipped 0.1p on the week before to average 164.70p/kg, putting it 1.21p behind the price for the same week a year ago and widening the gap between the SPP and APP.
"The lowest level since March"
NPA has reported that the UK price coming under pressure from falling EU prices reflects the “insufficient demand, both on domestic and export markets, in the face of higher pig meat production so far this year.”
AHDB analyst Bethan Wilkins said: “Over the four weeks ending 22nd August, the EU average reference price decreased by over €6 to just under €145/100kg, the lowest level recorded since March, with the latest average now 11% lower than the 5-year average for the time of year.
“This is a large difference, with the average over the past five years only around 13p/kg. We would expect this to exert downward pressure on the UK price.”
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
