Prime pig prices have started to come under increased seasonal pressure over the past few weeks.

The GB Standard Pig Price (SPP) has dropped slightly to 150.3p/kg dwt at the end of July.

This is down 9% on the prices paid in July 2017.

“Unfortunately for producers this has come at a time when tight global grain supplies have pushed up feed costs significantly, squeezing margins,” according to Iain Macdonald, Senior Economics Analyst with QMS.

Both the slower seasonal upturn from spring to summer and the shortfall in prices relative to last year signal a well-supplied market. Latest slaughter statistics from Defra support this, said Macdonald, showing a 4% year-on-year increase in the UK prime pig kill during April – June 2018.

“Coupled with a small increase in carcase weights, this has pushed up prime pigmeat production by 4.6%, said Macdonald.

Europe

Looking at an EU level, total pigmeat production grew by 5.9% over last year in the first four months of 2018. However, with EU exports flat year-on-year in the opening five months of 2018, the additional supplies left on the EU market have pressured farmgate prices, leaving the EU average down 15% year-on-year in July.