Pig market: 03/04/2018

Prices reported to IFA

Comment: Another week of static pig prices, with processors quoting from a low of €1.38c/kg up to €1.42c/kg. All main European markets seem to have stabilised following a few weeks of dramatic pig price increases. The Irish pig price has never improved since the consecutive decreases in January this year, despite the much-improved market for pigmeat. This week’s news that China is to impose tariffs on many products, including pork originating in the US, should, in theory, help European pigmeat exporters such as Ireland. The Chinese market, which has become an important market for Irish pigmeat products in the past four years, particularly lower-value cuts and offal, has unfortunately remained stubbornly sluggish in the first quarter of 2018. Demand has improved, but price sensitivity has been an issue. All factors combined, the current pig price undervalues the Irish pig at €1.40c/kg and is therefore entitled to an increase.