Pig market: 07/05/2018

Prices reported to IFA

Comment: Irish pig prices remain unchanged for another week, with €1.40c/kg being a representative average price, with slight variations around the country. Pig farmers are becoming increasingly concerned with the negative gap between the base cost of production of a kilo of pigmeat and the factory price. Today, this is leaving a deficit of at least €8 per pig that leaves a pig farm, with €10 loss per pig price being a more realistic picture today. If this situation continues for a prolonged period, the Irish pig industry will endure a cashflow crisis in the short term, but, more worryingly, a long-term profitability crisis is also becoming a distinct possibility. While international markets in the EU and Asia have been disappointing and below expectations in 2018 to date, the summer barbecue season will offer a much-needed lift, as will the upcoming World Cup.