NPA Pig Industry Blog - July 25, 2024: SPP drops; China names companies in EU anti-dumping probe
25th Jul 2024 / By Alistair Driver
Updates on the latest developments as the NPA seeks solutions to the long-running crisis that has hit the pig sector.
July 25, 2024
SPP drops back again
The EU-spec SPP dropped back by 0.47p to stand at 209.42p/kg during the week ended July 20, more than cancelling out the 0.38p gained the previous week.
The fall continues the recent a sequence of SPP increases followed by larger drops, meaning the price index has lost 2p since the beginning of June and 3p since the beginning of the year. It is now 15.6p below a year ago when the price index was nearing its peak.
The APP, which includes premium pigs, lost 0.6p during the week ended July 13 to stand at 212.28p/kg, after gains of 0.46p over the previous three weeks. This left it 2.86p ahead of the SPP for the week.
The European reference price (grade E) fell by another 3p during the week ended July 14 to stand at 181.66p/kg, expanding the gap to the equivalent UK reference price to nearly 28p, the biggest gap for some time. This was mainly on the back of reductions in Germany, Spain and Poland.
Estimated GB slaughterings for the week ended July 13 were up by nearly 10,000 on the previous week to 156,615 head, just 800 down on last year, but 33,000 below the 2022 figure.
However, these figures remain very much subject to revision amid ongoing uncertainty over Defra UK figures.
Average carcase weights increased fell by nearly 0.6kg to 90.23kg in the SPP sample during the week ended July 20, 1.3kg higher than the same week in 2023.
London feed wheat futures was quoted by AHDB on July 17 at £195.50/t for November 2024, £4 up on the week.
China names European pork producers in anti-dumping probe
China has named three European pork businesses as the focus for its anti-dumping investigation into EU pork.
China announced the investigation in June after the EU imposed provisional duties of up to 37.6% on Chinese-made electric vehicles.
More HERE
July 19, 2024
Agriculture seen by public as second ‘most valuable profession’
Britain’s farmers and growers are viewed as the most valued professions by the public, second only to nurses, a survey commissioned by the NFU has revealed.
It showed that 74% of those surveyed have a favourable view of agriculture workers. The majority recognise how much hard work those in the agriculture sector do, through all weather conditions, to produce food for the nation.
More HERE
July 18, 2024
SPP moves back up
The EU-spec SPP gained 0.38p to stand at 209.88p/kg during the week ended July 13, regaining some of the 0.91p lost the previous week.
A pattern has emerged over the past six weeks where a drop (0.62-1.23p) is followed by a smaller increase (0.38-0.47p). It means the SPP has lost 1.5p since the beginning of June and 3p since the start of the year. It is now 15p below a year ago when the price index was nearing its peak.
The APP, which includes premium pigs, has been much more volatile than the SPP this year, but it has stabilised over the past three weeks. It gained another 0.23p during the week ended July 6 to stand at 212.88p/kg, after gains of 0.1p and 0.13p over the previous two weeks. This put it 3.38p ahead of the SPP for the week.
The European reference price (grade E) fell by 3p during the week ended July 7 to stand at 184.26p/kg, expanding the gap to the equivalent UK reference price to 25p. This was mainly on the back of a 5p reduction in Germany and smaller drops elsewhere. EU prices largely stabilised last week, however.
AHDB has now resumed the publication estimated GB slaughterings, after these were halted following ‘the discovery of an error in the April and May 2024 Defra UK slaughter data’, which also led to major upward revisions in estimated GB weekly clean pig slaughterings for April, May and June.
Estimated GB slaughterings for the week ended July 6 were up by 9,600 on the previous week to 160,842 head, which was 9,000 up on 2023 but 34,000 below 2022.
However, the estimate for the week ended July 13 declined signifcantly to 146,812 head, just 2,000 below the 2023 figure but 34,000 below the same week in 2022.
These estimates remain subject to revision.
Average carcase weights increased by 0.54p to 90.8kg in the SPP sample during the week ended July 13, 2.3kg higher than the same week in 2023.
London feed wheat futures were quoted by AHDB on July 17 at £191.65/t for November 2024, £5 down on the week.
July 4, 2024
SPP bounces back
The EU-spec SPP gained 0.47p to stand at 210.41p/kg during the week ended June 29, partly cancelling out the previous week’s loss of 0.62p.
After a month of ups and downs, it means the SPP has lost just under 1p during June, following months of stability where the price index barely moved. It is now 3.7p below the start of the year and nearly 14p below a year ago.
The APP, which includes premium pigs, has experienced a series of ups and downs over a longer period, but it stabilised during the week ended June 22, gaining 0.1p to stand at 212.52p/kg, after losing 0.49p the previous week. This put it 2.6p ahead of the SPP for the week.
The European reference price (grade E) moved up by 0.4 during the week ended June 23 to stand at 186.45p/kg, after losing 2.6p the previous week. The gap to the equivalent UK reference price narrowed to just under 23p
After a big increase the previous week, AHDB’s estimated GB slaughterings were down by just over 10,000 on the week to 151,238 head during the ended June 29. This was 2,000 below 2023, and 29,000 below the 2022 figure for the week.
AHDBs weekly slaughter figures are always subject to revision. Last week, estimates dating back to the start of the year were revised upwards by up to around 7,000 to 8,000 in some cases.
Average carcase weights fell back fractionally to 90.57kg in the SPP sample during the week ended June 30, more than 2kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at £170/t for July, £3 up on last week, and £197/t for November 2024, the same as last week.
July 1, 2024
Denmark to introduce farm carbon tax
The Danish government is to introduce the Europe’s first carbon tax on agriculture.
From 2030, farmers will have to pay 120 Danish krone (DKK) (£13.60) per metric ton of emitted carbon dioxide (CO2) equivalent, rising to 300 DKK (£34) from 2035 onwards.
Agreement on the tax was reached between the Danish Government, local Governments and Danish farming, food meat processing and nature organisations and unions last week, after five months of negotiations.
Revenues from the tax will be channelled back to the sector and reinvested into green initiatives, climate technology, and production transformation, targeting the agricultural sectors facing the most difficulty transitioning, according to Jenny Brunton, from the UK farming union’s British Agricultural Bureau.
Approximately 40 billion DKK (£4.5bn) will be allocated to a new Green Landscape Fund, which will support the creation of 250,000 hectares of new forests, the restoration of 140,000 hectares of peatlands, further land conversion, and strategic land purchases, including farms, focused on nitrogen reduction.
More HERE
SPP falls again
The EU-spec SPP dropped back during the week ended June 15. It lost another 0.62p to stand at 209.94p/kg, more than cancelling out the previous week’s gain of 0.4p.
After the shock 1.23p reduction during the first week of week of June, the latest fall means the SPP has lost nearly 1.5p over the past three weeks, following months of stabilty. It is now more than 4 below where it was at the start of the year and nearly 13p below a year ago.
The APP, which includes premium pigs, also lost more ground, losing 0.49p during the week ended June 9 to stand at 212.42p/kg, following the previous week’s gain of 1.85p. This left it 1.9p ahead of the SPP for the week.
European prices have been very steady of late, but the European reference price (grade E), lost 2.6p during the week ended June 16 to stand at 185.81p/kg, expanding the gap to the equivalent UK reference price to 23.6p.
AHDB’s estimated GB slaughterings showed a significant weekly increase of more than 8,000 to 161,520 head during the ended June 15. This was 9,500 up on last year, but was still 23,000 below the 2022 figure for the week.
As is often the case, some significant revisions have been made to AHDB’s weekly slaughter estimates. Previous estimates have been revised upwards by 4,500 to 5,000 for the past few weeks and by around 7,000 to 8,000 in some cases over much of the spring period. The upward revisions date right back to the start of the year.
Average carcase weights fell back fractionally to 90.67kg in the SPP sample during the week ended June 23, more than 2kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at £167/t for July, £3 down on last week, and £197/t for November 2024, £2.50 down on last week.
June 21, 2024
SPP regains some lost ground
The EU-spec SPP regained some lost ground, increasing by 0.4p to stand at 210.56p/kg during the week ended June 15, following the previous week's shock 1.23p fall.
It is now 3.3p below where it was at the start of the year and more than 12p below a year ago.
The APP, which includes premium pigs, also recovered after losing 2.65p the previous week, gaining 1.85p during the week ended June 8 to stand at 212.91p/kg. This put it 2.35p ahead of the SPP for the week.
European prices remain steady. The European reference price increased slightly during the week ended June 9 to 188.33p/kg, leaving a fairly typical 21p gap to the equivalent UK reference price.
Defra’s latest update shows UK clean pig slaughterings in May were down 10% on May 2023 at 783,000 head, with pigmeat production 8.9% lower. May’s weekly average was 7% down on April.
Throughputs remain subdued into June. AHDB’s estimated GB slaughterings were fractionally up on the previous week to 148,444 during the week ended June 15. This was 1,500 up on last year, a time when throughputs had started to plummet, but was 27,500 below the 2022 figure for the week.
AHDB’s weekly slaughter estimates are always subject to revision.
Average carcase weights moved up slightly to 90.72kg in the SPP sample during the week ended June 16, more than 2kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at £170/t for July, £14 down on last week, and £199.5/t for November 2024, £5.50 down on last week.
June 14, 2024
EU pork exports face trade war retaliation threat
EU pork exporters could be facing sanctions on shipments to China, which is threatening to retaliate after the European Commission announced on Wednesday that it will impose tariffs of up to 38% on Chinese electric vehicle (EV) imports from early July.
The move has angered the Chinese Government and industry, with the China state-backed Global Times quoting 'observers' saying that it is 'purely political, helping neither EU consumers nor EU auto industries'.
The Chinese Foreign Ministry has vowed to take 'necessary measures' and China's Ministry of Commerce (MOFCOM) has said it reserves the right to resolve the dispute at the WTO, including filing applications for anti-dumping investigations.
The Global Times goes onto report that the relevant industries have collected evidence to file an application with authorities to launch an anti-dumping probe into certain EU pork and dairy products.
More HERE
June 13, 2024
Surprise drop in SPP
The EU-spec SPP dropped back by 1.23p during the week ended June 8, to stand at 210.16p/kg, while the APP has also recorded a big loss.
The surprise fall in the SPP was the biggest movement either way for the price index since mid-October and broke a remarkably stable run dating back to mid-January that has seen the SPP confined within a narrow band of less than 1p (210.67-211.61p/kg).
The SPP is now 3.7p below where it was at the start of the year and nearly 12p below a year ago.
The APP, which includes premium pigs, also recorded a big drop, falling by 2.65p during the week ended June 1 to stand at 211.06p/kg, virtually wiping out gains made over the previous three weeks. This left it 0.33p behind the SPP for the week.
The large drops have been recorded despite the fact that EU prices are currently very stable and pig supplies appear to be tight.
The European reference price dropped back very slightly during the week ended June 2 to 188.15p/kg, with the gap to the equivalent UK reference price now just over 21p, a fairly typical difference.
AHDB’s estimated GB slaughterings fell back by nearly 3,000 on the previous week to 148,187 during the week ended June 8. That is a relatively low figure, which although broadly in line with last year when throughputs were starting to come down, was more than 31,000 below the 2022 figure for the week.
AHDB’s weekly slaughter estimates are always subject to revision.
Average carcase weights dropped back slightly to 90.47kg in the SPP sample during the week ended June 9, nearly 2kg up on the same week in 2023.
London feed wheat has been volatile this week, quoted by AHDB on Wednesday at just under £184/t for July, £9 down on last week, and £205/t for November 2024, also around £9 down on last week.
June 6, 2024
SPP bounces back
The EU-spec SPP gained 0.34p during the week ended June 1 to stand at 211.39p/kg, wiping out the previous week’s loss.
It means the SPP remains within the narrow band of less than 1p (210.67-211.61p/kg) where it has been marooned since late-January. It is now 10p below a year ago.
The APP, which includes premium pigs, gained 1.9p during the week ended May 25 to stand at 213.71p/kg, building on gains of 0.48p over the previous fortnight. This put it.2.66p ahead of the SPP for the week.
European pig prices have also been extremely stable over the past month or so. The European reference price for week ended May 26 was slightly down on the previous week at 188.37p/kg, with the gap to the equivalent UK reference price now just under 21p, a fairly typical dfference.
AHDB’s estimated GB slaughterings gained nearly 11,000 on the previous week’s exceptionally low figure to reach 150,984 during the week ended June 1, 1,000 ahead of 2023, when throughputs were starting to come down, and 6,000 below the 2022 figure.
AHDB’s weekly slaughter estimates are always subject to revision.
Average carcase weights dropped back slightly to 90.58kg in the SPP sample during the week ended June 2, 1.4kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at just under £193/t for July, £10 down on last week, and £214/t for November 2024, around £9 down on last week.
May 30, 2024
Q1 export and import volumes fall
UK pork export volumes fell to their lowest level in nine years during the first quarter of 2024, HMRC figures show, as a result of lower domestic supplies, while imports declined to the second lowest figure ever recorded.
In March UK pig meat exports totalled 24,400 tonnes, down on both the previous month and a year ago, taking export volumes for the first quarter of 2024 to 75,500 tonnes, 4,000 tonnes, 5.1%, down year on year.
UK pig meat imports in March stood at 60,700 tonnes, up on February but down nearly 7,000 tonnes year on year. This brought the total import volume for the first quarter to 182,300 tonnes, a decline of 3,500 tonnes (1.9%) compared to 2023 and the lowest Q1 volume on record, excluding 2021 when Brexit had a severe impact on trade.
More HERE
SPP drops back again
The EU-spec SPP dropped back again during the week ended May 25, losing 0.37p to stand at 211.05p/kg.
This partly offset the 0.65p gained over the previous fortnight and means the SPP remains within the narrow band of less than 1p (210.67-211.61p/kg) where it has been marooned since late-January. It is now nearly 10p below where it was a year ago.
The APP, which includes premium pigs, has been less volatile in recent weeks. It gained just 0.2p during the week ended May 18 to stand at 211.81p/kg, building on the previous week’s gain of 0.48p. This left it just 0.4p ahead of the SPP for the week.
European pig prices for week ended May 19 were not available from the EU Commission this week. The latest EU reference price gained 1p to stand at 188.15p/kg during the week ended May 12, narrowing the gap to the equivalent UK reference price to 21.5p.
UK clean pig slaughterings in April were up 6.8% on April 2023 at 819,000 head, Defra’s latest official UK slaughter statistics show.
However, AHDB’s estimated GB slaughterings continued to trend well below last year. The figure fell by 11,600 to 140,097 during the week ended May 25, a very low figure even by recent standards and nearly 17,000 down on the same week a year ago and 37,000 below the 2022 figure. AHDB’s weekly slaughter estimates are always subject to revision.
Average carcase weights moved up slightly to 90.84kg in the SPP sample during the week ended May 26, 1.4kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at just under £203/t for July and £223/t for November 2024, around £3 up on last week in both cases.
May 23, 2024
SPP on the up
The EU-spec SPP increased by a welcome 0.56p to reach 211.42p/kg during the week ended May 18, the biggest movement either way since the first week of this year.
This followed weeks of small fluctuations over the past three-and-a-half months that has seen the SPP remain in a narrow band of less than 1p. It remains remains just over 9p below where it was a year ago.
The much more volatile APP, which includes premium pigs, gained 0.48p during the week ended May 11 to stand at 211.61p/kg, after losing nearly 2p over the past three weeks. This left it 0.75p ahead of the SPP for the week.
The EU reference gained 1p to stand at 188.15p/kg during the week ended May 12, its highest level for some time. The gap to the equivalent UK reference price stood at 21.5p, a fairly typical dfference.
Estimated GB slaughterings increased by 10,000 to 151,638 during the week ended May 18, following the previous week’s very low figure, but were still 12,000 down on the same week a year ago and 40,000 below the 2022 figure.
AHDB’s weekly slaughter estimates are always subject to revision.
Average carcase weights were unchanged at 90.72kg in the SPP sample during the week ended May 19, 1.1kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at £190/tonne for May, £3 up on last week, just under £200/t for July and £220/t for November 2024, £2 up on last week.
May 22, 2024
Red Tractor chair announces departure
Christine Tacon has announced she is leaving her role as chair of Red Tractor, having been appointed as board of the Co-op.
Mrs Tacon was appointed as Red Tractor chair in Janauary 2021 and has recently had to steer the organisation through the furore surrounding the introduction of the Green Farms Commitment and subsequent reviews of Red Tractor and farm assurance more widely.
Mrs Tacon said her return to the Co-op, where she headed its farming operations between 2000 and 2012, has created a dilemma in relation to her Red Tractor role.
Mrs Tacon made it a clear in a statement that she would have liked to have remained as Red Tractor chair, but that it was 'mutually agreed' with Red Tractor's Owneraship Body that she would need to step down from the role, if she was to join the Co-op board. She said did not want to 'give oxygen to those intent on criticising Red Tractor' or cause any 'negative publicity'.
"I would like to make it very clear that this is not a move I welcome in any way. I would have far preferred to carry on supporting Red Tractor at such a critical point. I am also confident I could have executed both roles without compromising either organisation," she said.
More HERE
May 21, 2024
Cranswick profit boost
Cranswick recorded a 26% increase in its profits in the latest financial year, as it continued to invest heavily in the business and grow its revenues.
The Hull-based pig and poultry business’s revenue grew by a further 11.9% (11.6% like for like) to £2.6 billion in the 53 weeks to March 30, 2024.
Its adjusted profit before tax went up from 140 million in 2022/23 to £176m in the last financial year, a 26.1% increase, while its adjusted operating margin increased from 6.3% to 7.1%.
Cranswick said its performance reflected a strong contribution from its expanded pig farming operations, tight cost control and robust returns from the effective deployment of capital.
More HERE
Huge leap in domestic ASF cases in Europe
A five-fold increase in the number of cases of African swine fever (ASF) in domestic pigs was recorded in Europe last year, as the total hit a nine-year high.
A total of 14 countries in Europe recorded outbreaks in domestic pigs, according to the latest annual epidemiological report published by European Food Safety Authority (EFSA), as 2023 became the worst year for domestic outbreaks since 2014.
More HERE
The NPA continues to push for import checks on illegal meat imports, which pose a huge threat to the UK pig herd, to be properly resourced in the UK. The NPA is also calling for the 2kg threshold on non-commercial pork imports to be dropped in favour of an outright ban.
May 13, 2024
Changes to permitted development rights
Defra has published a new post on its Farming blog explaining forthcoming changes to permitted development rights from May 21.
The Department said it had made the changes to make it easier for farmers to strengthen their businesses.
From May 21, farmers will no longer be required to submit a planning application for specific types of development. This includes converting agricultural buildings to a wider range of commercial uses, such as larger farm shops, buildings for agricultural training and sporting facilities.
You can read the post HERE
Animal health industry welcomes five-year plan to combat antimicrobial resistance
A new Government five-year plan to combat antimicrobial resistance (AMR) in humans and animals has been welcomed by the animal health sector.
The second national action plan will commit the UK to reducing its use of antimicrobials in humans and animals, strengthen surveillance of drug-resistant infections before they emerge and incentivise industry to develop the next generation of treatments.
The Government pledges to work alongside the veterinary profession to ensure that they have the necessary data, knowledge and skills to advise on good husbandry and animal management strategies for disease prevention, prescribe antimicrobials responsibly, and, where appropriate, recommend evidence-based alternative treatments in place of antimicrobials.
Cat McLaughlin, chair of The Responsible use of Medicines in Agriculture (RUMA) Alliance, said RUMA was ‘very pleased’ to see the launch of the plan today, which she said further supports and drives UK efforts to tackle AMR from a One Health perspective.
More HERE.
May 9, 2024
SPP dips again
The EU-spec SPP dropped back by another 0.2p to stand at 210.76p/kg during the week ended May 4, following the previous week’s 0.1p decline.
The SPP has now fallen for five of the past six weeks, during which time it has lost 0.84p. However, after more than three months of small fluctuations, it is still only 0.6p behind where it was in late January, although it is now nearly 9p below where it was a year ago.
The much more volatile APP, which includes premium pigs, lost another 0.5p during the week ended April 27 to stand at 211.79p/kg, after losing 1.31p the previous. This left it just 0.33p ahead of the SPP for the week.
The EU reference price more than made up for the previous week’s fall, gaining 1.1p during the week ended April 28 to stand at 188.29p/kg, narrowing the gap to the equivalent UK reference price to just over 20p.
Estimated GB slaughterings were 2,400 higher than the previous week at 152,543 during the week ended April 27. This was 5,400 down on the same week a year ago and still nearly 37,000 below the 2022 figure, when extra kills were taking place to get through the backlog. AHDB’s weekly slaughter estimates are always subject to revision.
Carcase weights inched up by just by 0.06kg to 90.48kg in the SPP sample during the week ended May 5, more than 1kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at £190/tonne for May, £11 up on last week and £213/t for November 2024, £12 up on last week.
May 8, 2024
Global pig herd starts to turn corner, as consumption steadies and feed costs fall
The global pork industry is in the midst of a pivotal shift as sow herd numbers begin to plateau after a period of decline, according to Rabobank latest quarterly pork report.
This stabilisation has com about as a result of better-than-expected consumption trends, coupled with reduced production costs across most regions. These factors are contributing to a more optimistic outlook for pig prices and, therefore, encouraging producers to consider rebuilding their herds, with Rabobank predicting ‘meaningful’ herd growth will be seen next year.
More HERE
Italy sends in the troops to hunt wild boar in face of ASF threat
The Italian Government has announed it is sending in troops across the country to hunt wild boar in order to protect its pig industry from African swine fever (ASF).
The mission, reportedly spearheaded by Prime Minister Giorgia Meloni, is aiming to curb Italy’s wild boar population by as much as 80% over the next five years, according to the Daily Express.
The military deployment, comprising 177 soldiers, was approved by the cabinet as part of a comprehensive strategy to safeguard Italian agriculture and culinary heritage, it is reported.
More HERE
April 22, 2024
Which? highlights misleading supermarket labelling
Consumer champion Which? has found evidence of ‘misleading, inconsistent and meaningless food labels in supermarkets’, alongside a lack of confidence in the system among consumers.
Which? researchers visited the UK’s biggest supermarkets and various examples of ‘meaningless’ pork product labels, including a pack of sausage rolls from Lidl which stated they were processed using ‘UK and non-UK pork’.
Aldi’s Crestwood bacon and cheese wraps had Union Jacks and ‘Made in Britain’ on the front of the pack, while the label on the back said they were made with pork from the EU.
A Which? survey of 2,011 UK adults revealed that only 51% of shoppers found the current origin information helpful, while 64% would be more likely to buy a product labelled ‘British’ than one that was not.
Which? will be sharing its findings with Defra’s consultation on changes to food labelling laws, launched in February.
More HERE
Defra insists BTOM will be up and running on April 30
Defra has insisted its new border controls will be ready on April 30, after a report in the Financial Times cast considerable doubt on the extent of physical checks that will take place from that date.
The FT reported on Friday that it has told the country’s port authorities that it will not ‘turn on’ critical health and safety checks for EU imports when post-Brexit border controls begin this month because of the risk of ‘significant disruption’.
However, in a blog, Defra strongly refuted the report, insisting the government has ‘full confidence that the facilities, infrastructure and systems at the border, will be ready for the April 30 implementation date of new border checks’.
More HERE
Sofina Foods Europe acquires farms and livestock from Rattlerow Scotland
Sofina Foods Europe, which owns Karro, has strengthened its integrated pork supply chain through the acquisition of a number of farms, equipment and livestock from Rattlerow Scotland, part of leading UK pig genetics company Rattlerow Farms.
The deal will also see up to 12 Rattlerow Scotland employees transferred to Sofina Europe, with Rattlerow continuing to manage elements of genetic input and technical oversight.
More HERE
April 18, 2024
SPP falls for third week in a row as slaughter numbers rise
The headline pig price continues to fall, as prices in Europe stagnate, while last week saw a notable increase in estimated slaughter numbers.
The EU-spec SPP fell for the third consecutive week during the week ended April 13, dropping back by a further 0.34p to stand at 210.67p/kg. The SPP has now lost nearly 1p over the past three weeks and 3p since the end of 2023, despite barley moving during February and March. It is now nearly 7p behind where it was a year ago, when pig prices were still rising.
The much more volatile APP, which includes premium pigs, gained 0.78p during the week ended April 6, more than cancelling out the previous week's losses, to stand at 211.93p/kg. This put it nearly 1p ahead of the SPP for the week.
Having gained 16.5p in the February and March, the EU reference price dropped back by 0.7p during the week ended April 7 to stand at 187.3p/kg. This meant the gap to the equivalent UK reference price expanded slightly to 21.3p, albeit still much more manageable than the 37p gap at the start of February.
The most eye-catching aspect of this week's update is a big increase in estimated GB slaughterings, although this might be partly explained by the fact that it followed the two shorter Easter weeks.
Estimated GB slaughterings for the week ended April 13, were 13,000 up on the previous four-day week at 158,699. This was 5,000 more than the same week a year ago, but still 19,000 below the 2022 figure, when extra kills were taking place to get through the backlog.
As is often the case, there have been substantial revisions to recent estimated slaughter figures, following publication of Defra's latest monthly UK slaughter statistics. The previous few weeks have been revised upwards by, in some cases, more than 10,000 head.
Carcase weights fell back by more than 0.5kg to 91.15kg in the SPP sample during the week ended April 14, still more than 1kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at £173/tonne for May, slightly down on last week and £196/t for November 2024, £1 up on last week.
April 12, 2024
UK slaughterings 10% down in March
March UK clean pig slaughterings were 10% down on a year ago, the latest official Defra slaughter figures show.
A total 805,000 clean pigs were slaughtered in the UK in March, compared with 894,000 in March 2023. UK pigmeat production was 8.6%, 75,000 tonnes, lower than in March 2023, as carcase weights averaged 90.4kg, slightly down on February.
More HERE
Tesco launches Best of British website section
Tesco has become the latest UK retailer to launch a ‘Best of British’ section on its website.
It becomes the seventh major retailer to launch British sections since a campaign was launched last year by Conservative MP Luke Evans. Morrisons was the first to move followed by Sainsbury’s, Aldi and, last month, Ocado Retail, Waitrose and Co-op. Asda is the last major retailer yet to commit.
More HERE
April 11, 2024
SPP falls back again
The EU-spec SPP fell for the second week in a row, dropping back by a further 0.38p during the week ended April 6 to stand at 211.01p/kg, meaning it has now lost 0.6p over the past fortnight.
The price index has been extremely stable over the past two months and, despite recent setbacks, is still only 0.35p behind where it was at the end of January. It is now nearly 7p behind a year ago, when pig prices were still rising at a decent rate.
The much more volatile APP lost a further 0.57p to to stand at 211.15p/kg during the week ended March 30, meaning it has now lost more than 2p in the last fortnight. This left it fractionally behind the SPP for the week.
The EU reference price gained another 1.2p during the week ended March 31 to stand at 187.88p/kg, closing the gap to the equivalent UK reference price to 21p, compared with 37p during the week ended February 4, when the EU reference price stood at 171.5p/kg.
Estimated GB slaughterings for the week ended April 6, the second of the two short Easter weeks, were 9,000 down on the previous week at 134,181. This was 16,000 below the same week a year ago, and more than 60,000 below the 2022 figure, when extra kills were taking place to get through the backlog.
These weekly slaughtering figures are always subject to revision when the monthly Defra UK slaughter statistics are published.
Carcase weights inched up again, averaging 91.68kg in the SPP sample during the week ended April 7, nearly 1kg up on the same week in 2023.
Cereal prices continue to edge up. London feed wheat was quoted by AHDB on Wednesday at around £174/tonne for May, £4 up on last week and £195/t for November 2024, £2 up on last week.
April 9, 2024
Farming Today pig week explores farrowing crates
The BBC Farming Today programme explored the pros and cons of flexible farrowing systems at Bishop Burton college.
In the second part of its ‘Pig Week’, presenter Sarah Falkingham visited the East Yorkshire college’s new £1 million state-of-the art Pig Industry Training centre that includes 72 AM Warkup flexible farrowing pens.
You can see a fuller write-up HERE and listen to the interview HERE.
April 4, 2024
SPP drops back as market stability continues
The pig price has been remarkably stable of late and this continued during the week ended March 30, as the EU-spec SPP dropped back by 0.22p to stand at 211.39p/kg.
This continued the recent pattern of small dips and gains in quick succession, cancelling out the previous week's 0.3p increase. The price index is now back virtually where it was at the end of January, having stayed within a tight band of 0.3p within the eight-week period.
It is now more than 4p behind where it was a year ago, when pig prices were still rising at a decent rate.
The much more volatile APP, which includes premium pigs, lost virtually all the gains made the previous week, dropping back 1.5p during the week ended March 23, to stand at 211.73p/kg, leaving it fractionally ahead ahead of the SPP for the week.
The EU reference price gained another penny during the week ended March 24 to stand at 186.68p/kg, meaning the gap to the equivalent UK reference price has narrowed to 22p, compared with 37p gap of a few weeks ago.
Estimated GB slaughterings for the week ended March 30 were 1,500 down on the previous week at 143,186, 19,000 below the same week a year ago, and nearly 27,000 below the 2022 figure. These weekly slaughtering figures are often subject to revision when the monthly Defra UK slaughter statistics are published.
Carcase weights are on the up again, averaging 91.35kg in the SPP sample during the week ended March 31, nearly 1kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at around £170/tonne for May, similar to last week and £193/t for November 2024, slightly up on last week.
March 28, 2024
SPP moves up again
The EU-spec SPP followed last week's small dip with a small gain of 0.3p during the week ended March 23 to stand at 211.61p/kg.
The price index has been extremely stable since the end of January, when it stood at 211.36p/kg, fluctuating up and down since. It is now 2.3p behind where a year ago, when pig prices were still rising at a decent rate.
The much more volatile APP, which includes premium pigs, gained a further 1.6p during the week ended March 16, meaning it has gained 2.8p over the last two weeks, to stand at 213.23p/kg. This put it nearly 2p ahead of the SPP for the week.
The UK-EU price gap continues to narrow. The EU reference price gained another penny during the week ended March 17 to stand at 185.63p/kg, meaning the gap to the equivalent UK reference price has narrowed to 23p, far more manageable in terms of imports than the 37p gap of a few weeks ago.
Throughputs remain very suppressed. Estimated GB slaughterings for the week ended March 23 gained nearly 4,000 on the very low figure of the previous week to stand at 144,650, 11,000 below the same week a year ago, and 27,000 below the 2022 figure.
These weekly slaughtering figures are always subject to revision – and AHDB has suggested that the very low figure of 141,000 for the week ended March 16 may reflect a higher proportion of pigs being killed outside the SPP sample than usual.
Carcase weights are coming down slightly, albeit from a high base, with the average in the SPP sample dropping back slightly to 91kg during the week ended March 24, 0.6kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at around £170/tonne for May, slightly up on last week and £192.5/t for November 2024, £3.50 up on last week.
March 21, 2024
Slaughter numbers plummet as SPP drops back
The EU-spec SPP has dropped back again, but the most eye-catching part of the latest of AHDB's market data is the drop of in estimated slaughter numbers.
If these turn out to be accurate - and they are often revision - weekly GB slaughterings, at 141,000 for the week ended March 16, appear to be at the lowest level outside of Christmas and New Year since April 2010.
Estimated GB slaughterings for the week were nearly 6,000 down on the previous week, 20,000 below the same week a year ago and 34,000 below the 2022 figure.
The drop off appears to be a combination of the vastly reduced breeding herd, combined with, according to last week's PIG meeting, productivity issues, partly the result of the relentless wet weather.
The SPP lost 0.18p to stand at 211.31p/kg during the week ended March 16, following the previous week’s 00.16p increase. It has been extremely stable since the end of January, when it stood at 211.38p/kg, fluctuating up and down by tiny amounts since, and is now roughly back to where it was.
It is now, however, for the first time in a very long time, now more than 1p behind the SPP of a year ago, which stood at 212.53p/kg, at a time when pig prices were still rising at a decent rate.
The much more volatile APP, which includes premium pigs, gained 1.2p during the week ended March 9 to stand at 211.63p/kg, cancelling out the declines of the previous fortnight. This put it back ahead of the SPP for the week by just 0.14p/kg.
Despite the latest reverse, many within the industry remain optimistic that the combination of tightening supplies and rising EU markets will support the market over the coming weeks.
The UK-EU price gap continues to narrow. The EU reference price was up another 2p to 184.73p/kg during the week ended March 10, with increases across the board among the big EU pork producers. It is now less than 24p behind the UK reference price, compared with 37p only a few weeks ago, with the potential for this to narrow further.
Carcase weights remain high albeit with the average in the SPP sample dropping back slightly to 91.15kg during the week ended March 17, 0.9kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at around £163/tonne for March, £3 up on last week, £169/t for May and £189/t for November 2024, the same as last week.
March 7, 2024
SPP drops back again
After two consecutive very welcome weekly price increases, the EU-spec SPP dropped back by 0.27p to 211.33p/kg during the week ended March 2.
This cancelled out a big chunk of the 0.46p gained over the previous fortnight. However, since the start to the year, the SPP has lost just 2.6p, representing a period of relative stability. It is, however, now just 1.6p ahead of the same week last year, when prices were still rising steadily.
The more volatile APP, which includes premium pigs, lost 0.29p/kg during the week ended February 24 to stand at 211.36p/kg, cancelling out the 0.3p gained the previous week. This left it 0.24p behind the SPP for the week.
EU prices have been rising significantly over the past few weeks. The EU reference price gained a further 3p to reach 180.76p/kg during the week ended February 25, meaning it has increased by more than 9p in the space of three weeks, with the German reference price up by more than 13p over the period.
The gap to the UK reference price, which had grown to nearly 37p only a few weeks, has closed to 27p. The EU reference price is likely to go higher after further price increases last week.
Estimated GB slaughterings for the week ended March 2 were 9,400 up on the previous week and 1,000 above the 2023 figure, at 158,006, but remained 10,000 down on the same week 2022. These slaughtering estimates are often subject to revision.
Carcase weights remained high, with the average in the SPP sample rising to 91.18kg during the week ended March 3, 1.6kg up on the same week in 2023.
Cereal prices have moved back down and well below recent highs. London feed wheat was quoted by AHDB on Wednesday at around £155/tonne for March, £5 down on last week, and £177/t for November 2024, also £5 down on last week.
Budget reaction
The NFU has welcomed some elements in Chancellor Jeremy Hunt’s Spring Budget, but said it doesn’t go far enough in offering stability for agricultural businesses, growth in food production and decarbonising the sector.
The headline announcements included a 2% reduction in National Insurance for the self-employed, while there was also an extension to agricultural property relief (APR).
You can read more reaction HERE
March 1, 2024
Defra Minister responds to EFRA concerns over Dover funding
Defra Minister Lord Douglas-Miller has responded to a request from Sir Robert Goodwill, chair of the Environment, Food and Rural Affairs Committee, for clarity over Defra’s funding plans for spot checks of Products of Animal Origin (POAOs) at the port.
He confrmed that Defra is cutting PHA funding used to tackle illegal meat imports, which he said was always going to be temporary until the Government’s Border Target Operation is in place. He suggested Dover could make up the shortfall by charging the illegal meat importers.
A Dover District Council document shows Defra informed it just before Christmas that it was withdrawing 66%, £2m out of £3.2m, of funding from the DPHA in 2024/25, starting in April, and the remaining £1.2m in 2025/26.
The Defra Minister stressed that Border Force was ‘responsible for the management of illegal imports’, including spot checks at the point of entry, while PHA officers have been asked to ‘support Border Force to deal with illegal imports of POAO when they are identified’.
“Dover Port Health Authority, along with other PHAs, is currently in receipt of grant funding from Defra, under provisions put in place following the decision by government in 2022 to delay the implementation of SPS controls,” he wrote.
“Once phase two of the BTOM is introduced in April, this transitional grant funding scheme will end as intended: at this point PHAs will be able to charge traders to recover costs."
Full story HERE
ASF found in Albania for the first time
African swine fever (ASF) has been discovered in Albania for the first time, as it becomes the latest European country to report the virus.
The World Organisation for Animal Health (WOAH) eports that the virus was found in two wild boar in a forest in the Kukes region in the North West the country, not far from its borders with North Macedonia and Montenegro, both of which have reported ASF outbreaks recently.
More HERE
February 29, 2024
SPP rises again
Pig prices continue to move in the right direction, as rising EU prices and tight domestic supplies support the market.
The EU-spec SPP increased by a further 0.39p to 211.6p during the week ended February 24, meaning the price index has risen for two consecutive weeks for the first time since late-July/early-August, when it reached its peak of beyond 225p/kg.
The SPP has lost 1.2p since the start of the year, while the gap to the same week 12 months ago has still narrowed to just below 4p.
The more volatile APP, which includes premium pigs, gained 0.3p to stand at 211.65p/kg during the week ended February 17, having fallen back by 1.48p the previous week. This left it 0.43p ahead of the SPP for the week.
EU prices have been on the rise over the past few weeks, which is reflected in the EU reference price, which rose a further 4.2p to reach 177.76p/kg during the week ended February 18, meaning it has gained more than 6p in the space of a fortnight.
The gap to the UK reference price, which had grown to nearly 37p, has closed to just over 30p, a gap that looks likely to narrow further in the coming weeks.
Estimated GB slaughterings for the week ended February 25 fell by more than 7,000 on the week to 148,572, 7,000 down on the 2023 figure for the week, and 34,000 down on 2022. These slaughtering estimates are often subject to revision.
Carcase weights remained high, with the average in the SPP sample rising to 90.67kg during the week ended February 25, 1.3kg up on the same week in 2023.
London feed wheat was quoted by AHDB on Wednesday at around £160/tonne for March, £3 up on last week, and £182/t for November 2024, £1 up on last week.
February 27, 2024
UK export volumes down by 20% last year
UK Pigmeat export volumes, including offal, fell by 20% last year to 298,000 tonnes, as a result of lower UK production and subdued demand in Asia.
Imports of pigmeat to the UK were down by 2.4% over the whole 2023, totalling 781,600 tonnes, although that was all weighted towards a big year-on-year reduction over the first four months of 2023.
Full story HERE
February 20, 2024
Sunak announces industry support as Batters calls for food security priority
Prime Minister Rishi Sunak was the headline speaker at the NFU conferene, which got under way on Tuesday morning.
Ahead of a likely General Election, he attempted to convince a farming audience of 1,500 that the Government 'had their backs'.
There was announcement of funding support, including an 'unprecedented package' of funding for technology and productivity schemed.
He a