Trade steady as supplies stabilise in EU

By James Brady

At the close of last week stabilisation of prices and supplies was the dominant market sentiment. Irish prices remain unchanged as €1.27 on average for suppliers to the major slaughterhouses, with butchers paying €1.33 to €1.34. The NI prices are still some 6 to 8 cent/kg ahead of the average Southern price and as a result are continuing to attract large numbers of pigs.

Sow prices are still ranging from €19-€22 per cwt live-weight. No reaction to date on the relatively poor Irish sow price so more investigation will be necessary to establish the basis for the wide gap. The weaner trade remains steady, with prices of €45 the top price on offer for 32kg pigs. Prices of €42 to €44 are most widely quoted. Demand for weaners on the continent is broadly weak and mainly confined to Italy where a weaner price of €57 is quoted for 23kg weaners. This compares with a quote of €33 in Germany and €26 in Holland.

During the past few weeks, Dutch abattoirs made their profits from the price drop in Germany. Up to week 38, the average number of pigs slaughtered in Holland was almost 264,000 per week, this has now increased to 276,750 pigs within the last four weeks (weeks 39 to 42). An opposing trend, however, is observed with the exports of Dutch pigs for slaughter. The average export volume was 39,500 pigs until week 38, this figure decreased considerably during the past four weeks, going down to 34,750 pigs per week. The main reason for this is Germany's price fall, following which marketing the pigs in their own country has become more attractive for the Dutch. For this year's first 38 weeks, the average price for deliveries of Dutch pigs for slaughter to German abattoirs was €2.90 higher than those for deliveries to Dutch abattoirs. In week 39 and 40, this distance in price was reduced. Since week 41, the prices are higher for marketing the pigs in the Netherlands than they are for marketing pigs into Germany.