UK pig meat production up but farm-gate prices down

FARMING THE current state of the pig meat market highlighted in the latest commentary from Quality Meat Scotland (QMS) shows the complexity of the international red meat trade.

“While basic supply and demand will always be core drivers of the market place, international responses to disease outbreaks also have a significant effect,” said Stuart Ashworth, director of economic services at QMS.

“Trade disputes can also impact on both supply and international trade,” he added.

Pig meat production in the EU, including production in the UK, has been increasing over the last year and production in the first half of 2018 was nearly 4 per cent higher than last year.

“European producer prices for prime pigs are currently 7-8 per cent lower than a year ago. Scottish producers are similarly seeing farm-gate prices around 7 per cent lower than last year,” said Mr Ashworth.

Meanwhile, domestic consumption of pork continues to struggle to match last year’s levels despite these lower prices.

Mr Ashworth pointed out that overlying the domestic market is the importance of international trade to European pig producers.

About 17 per cent of EU pig meat is exported, with China taking around 35 per cent of all exports and disruptions to international trade can quickly impact on producer prices.

The actions of other countries can have a profound effect on the global market said Mr Ashworth.

Russia has banned EU pig meat imports for an extended period and has also banned imports of Brazilian pig meat over concerns about the use of feed additives, leaving Brazil looking for alternative markets, including China, and increasing competition.

China has also recently increased tariff rates on US pork, potentially displacing US pig meat on to a global market.

Meanwhile the presence of African Swine Fever (ASF) in several EU member states has resulted in some markets excluding all or part of EU pig meat from their markets. Harrison & Hetherington Ltd had 586 suckled calves forward at their annual show and sale in St Boswells on Thursday when the averages were as follows: Heifers; up to 6 months 236.9p per kg (-4p on the year); 7-10 months 218.3p (-2p); 11-14 months 196.1p. Bullocks; up to 6 months 242.2p (+1.4p); 7-10 months 228.6p (no change); 11-14 months 213.6p (-3p).

C&D Auction Marts sold 3,526 prime lambs in Longtown on Thursday to a top of £108 per head and 244p per kg to average 160p (-2p on the week).

The firm also had 5593 cast sheep forward when heavy ewes averaged £70.40 (+£11.39) and light/exporttype ewes levelled at £32.92 (+£1.78). Rams sold to £158 for a Texel and averaged £64.46.