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Demand strong, but production issues hamper response - TVC

15th Jun 2020 / By Alistair Driver

Retail demand remains strong, but production issues prevented the sector from taking full advantage last week, according to Thames Valley Cambac.

abattoir workersDemand remained out of step with supply as factory problems hampered the number of pigs being entered," TVC said in its weekly market report.

“Most of the majors planned full kills again, and seemed to cope well with any staffing issues caused by the coronavirus crisis. However, we do urge producers to ensure that they have at least a week’s production space spare in the system to accommodate any factory issues that we may experience,” it said.

The draw from retail remains strong, which is borne out in the latest AHDB/Kantar data showing consistent increases in the market share of staples like sausages, bacon and ham, helping to keep throughputs up.

All contract price contributions stood on, as did the SPP. “We wait to see how next week’s SPP reacts to the recent price increases,” TVC said.

Fresh meat demand was surprisingly buoyant, seemingly not affected by the poor weather, and prices were generally similar. It was the same story with the cull sow market, which has overcome some serious logistical issues on the continent due to the closure of a major boning plant.

In Europe, prices steadied, with Spain the only significant riser, up just shy of 2 eurocents, and helped by improving exports. Price quotes in sterling were enhanced also by a stronger Euro that ended the week up 0.20p at 89.65p.

Supplies of both 30kg stores and 7kg weaners remained on the tight side, and some orders failed to be fulfilled. However, some fatteners voiced concerns over the future feed costs, and general market direction as we leave lockdown.

There was no AHDB prices quote given for a 30kg store pig and the weighted average for a 7kg weaner fall by 35p to £42.53.

European Prices (p/kg.dwt) w/c 14/06/20    Movement on last week

European Av.                           141.32             + 0.59

Belgium                                  129.23             + 0.30

Denmark                                 133.58             + 0.31

France                                     144.81             + 0.33

Germany                                 148.82             + 0.34

Ireland                                     147.48             + 0.34

Holland                                    133.58             + 0.43

Spain                                       151.71             + 2.06

(Ref Weekly Tribune)