Pig prices fall 9% but plummet 20% across the pond

FARM-GATE pig prices have cooled over the past few weeks, leaving them currently nine per cent lower than this time last year.

According to Stuart Ashworth, head of economic services at Quality Meat Scotland (QMS): “As the year draws to a close, pig prices normally do dip seasonally. Also contributing to the cooling of producer prices is a large availability of pigs for slaughter in the UK.

“Notwithstanding the dip in slaughtering caused by reduced supplies of CO2 during June, which caused some increase in availability during July as the backlog was cleared, the UK weekly pig kill in July this year was reported to be 6% higher than last year, more than offsetting the lower kill in June.”

However, Scottish producers are seeing more modest price falls than elsewhere in the world.

“The average European producer price, which had strengthened during July and early August, has declined and is now 12% lower than last year. North American pig producers are seeing prices more than 20% lower than this time last year, as are the Brazilians,” said Mr Ashworth.

Looking at European prices, these are under pressure because of much higher production in the main pig producing nations of Europe – Spain and Denmark, but also Poland and Romania – plus static export demand.

According to Mr Ashworth, falling prices in the US are associated with growth in production, but also the sensitivity of commodity prices to changing terms of trade. “The developing trade war between China and the US has seen China increase tariff rates and physical checks on American pig meat on two occasions over the summer.

“This caused a collapse in American pig meat exports to China, leaving a significant volume on the domestic market.”

Brazilian producer prices are much lower than last year because the Russian market has been closed to them following technical concerns.

Market round-up

C&D Auction Marts sold 3,078 prime lambs in Longtown on Thursday to a top of £128 per head and 218p per kg to average 171p (-7p on the week).

An increased entry of 5,620 cast sheep saw heavy ewes sell to £157 for Texels and average £68.51 (-£10.07), while light/export-type ewes peaked at £76 for Cheviots and levelled at £37.73 (+£5.88). Rams sold to £140 for a Texel and averaged £62.53.

Messrs Craig Wilson Ltd sold 3,203 store and breeding sheep at their annual Blackface ewe sale at Ayr on Thursday.

Blackface ewes sold to £76 for a pen shown by Messrs James Murdoch & Son, Knockdon, Straiton and averaged £58.46 (-£2.15 on the year) for 750.

Blackface gimmers sold to £143 for a pen from JG Dunn, Shankston, Patna and averaged £93.50 (-£6.57) for 572.