Pig prices ‘return to seasonal pattern’

Pig prices are showing a return to seasonal market patterns, according to Quality Meat Scotland.

The organisation’s senior economics analyst, Iain Macdonald, said the Standard Pig Price showed its first weekly decline for more than five months at the start of August.

This in addition to a well-supplied market and an upturn in slaughter numbers had resulted in spot prices falling below contract prices in recent weeks.

“In addition to supply, the Chinese market has been a key driver behind global pig prices over the past couple of years,” said Mr Macdonald.

“A tightening of supply in China led to a sharp increase in imports in 2016.

“EU countries benefited from this and collectively grew shipments to China by 85%, helping drive a recovery in farmgate prices from their 2015 low.

“However, this surge in imports slowed in the second half of 2016.”