Pig prices fall by a third in two years
The price farmers and pig producers are receiving for their pigs has fallen by a third in a little over two years, a report issued by AHDB Pork has revealed.
According to AHDB Pork, should this trend continue it is feared many will be forced to leave the industry.
The report has been produced by the AHDB Pork market intelligence team, and aims to provide an overview of the pig industry in the UK and a round-up of the state of the market.
Pig prices are currently at a near eight year low. Since late 2013, the average pig price has fallen steadily, with pigs losing a third of their value in that time.
Moreover, price falls have accelerated in the past 12 weeks, losing 13p/kg (around £11 per head).
As a result, many pig producers are now losing money and AHDB Pork says there is an increasing risk some will decide to leave the industry, affecting the level of UK pork available to the market.
The reports also revealed that despite falling prices, retail purchases of park have been decreasing as consumers increasingly switch to more convenience based foods, where pork does not feature as strongly.
Stephen Howarth, AHDB Pork market specialist manager, said: “The report has been produced against a backdrop where production continues to rise as efficiency and productivity improve and record weights are being seen.
“This all leads to more pig meat on the market. At the same time, demand for pork has dropped, even though the price is falling. UK pork is having to battle hard against cheaper EU imports, exacerbated by the weakness of the euro against sterling and a supply glut on the continent due to increased production and closure of trading routes to major export partners.”