Hogg prices show strength

HOGG PRICES are showing particular strength, according to the latest analysis by Quality Meat Scotland (QMS).

Since the turn of the year, Scottish auction prices for hoggs have risen about 4% and stand some 22% better than last year, said Stuart Ashworth, QMS’s head of economics services. However, they remain 4% lower than in early February 2012.

“Compared to this time last year the auctions are handling 8- 9% fewer hoggs, and volumes are also marginally below the levels reaching auctions in early 2012,” he said.

“The number of animals measured as grading R3L or better is marginally ahead of last year and better than 2012,” he added.

The situation for heavy lambs is similar across Europe: prices around 15% above year-earlier levels but failing to match 2012.

However, for light lambs, under 12.5kg deadweight, prices are trailing both 2013 and 2012 levels.

Although prices in France and Ireland are above the levels seen in 2013, the French price has slipped over the past four weeks, while the Irish price has stabilised. Ireland has also seen hogg volumes reaching the market fall around 10% on this time last year.

“French government forecasts suggest that production, imports and consumption will all fall further in 2014,” said MrAshworth.

On a more positive note, the UK share of exports to France has increased at the expense of both Ireland and New Zealand, he said.

“New Zealand once again failed to make full use of its preferential import allocation, or tariff rate quota, in 2013 and instead grew its exports to China.

“New Zealand’s need to supply Europe in spring 2014 is then diminishing as it benefits from a growing Asian market which is increasingly taking higher value cuts,” he said.

New Zealand slaughter statistics show their lamb kill in the final quarter of 2013 was up 3%, which, he said, points towards a tighter supply as their marketing year progresses.

New Zealand producers are benefiting from farmgate prices around 15% higher than last year in local currency and 10% higher in euros. They remain well below European prices and very competitive.

While the sheep market looks robust, the cattle market continues to come under pressure with prices in Scotland falling 4% since the turn of the year, but still 4% higher than last year.

The price in England and Wales has fallen 3% and is very similar to last year. The Irish price has stayed flat over the past month.

“Unlike the hogg market, the prime cattle market is a little better supplied than last year, with pricereporting abattoirs showing throughputs about 2% higher than a year ago in England and Wales but at similar levels in Scotland,” added MrAshworth.

“The English and Welsh abattoirs are also much better supplied than they were in autumn 2013, while Scottish abattoir volumes are similar to autumn levels. Irish abattoirs are even better supplied, with current throughputs up around 6-7% on the year, although young bull volumes are much lower.”