SPP records biggest increase since August 2016
6th May 2021 / By Alistair Driver
Pig prices continue their recovery, as the SPP rose by a massive 2.34p to average 147.44p/kg last week - the largest week-on-week growth recorded since August 2016.
This still leavwa the SPP nearly 17p below the price recorded for the same week in 2020, but it is now 2.6p above the five-year average.
Strong demand and tight supplies appear to be driving the price, with weekly contribution prices reportedly up 3-5p last week.
Estimated clean pig slaughter, at 177,700 head, was up slightly on the previous but continues to run well ahead of last year and the five-year average, as plants continue to operate relatively smoothly.
Average carcase weights, at 87.26kg, were 130g heavier on the week before, the first week-on-week rise since mid-February. Average weights are now 2.10kg heavier year-on-year.
In the week ending April 24, the GB EU-spec APP rose by 0.81p to average 148.68p/kg, narrowing the gap between the SPP and APP for that week to 3.58p/kg.
The EU Reference remains steady at around the 135p/kg mark.
To see Pig World's weekly price graphs, click here
As we keep mentioning (in case you haven't seen our previous market updates), the brighter outlook currently needs to be put in the context - this follows an horrendous six months that has seen producer incones take a very big hit.
Input prices, particularly feed, remain high - with AHDB estimating that, alongside low prices, producers were losing on average £25/pig during the first quarter of 2021, following an average margin of -£6/head in the last quarter of 2020.
Defra's recently-published Farm Business Income figures forecast that average pig farm incomes have fallen from £37,000 in 2019/20 to just £5,000 in 2020/21, a massive 87% reduction, despite a relatively first half of the financial year.