Many producers now losing money
Pig producers may be forced to leave the industry if prices continue to fall, warns AHDB Pork.
The average pig price has fallen steadily with pigs losing a third of their value since 2013. Price falls have accelerated in the past 12 weeks, losing 13p/kg (Around £11 per head).
As a consequence, many pig producers are now losing money and there is an increasing risk some will decide to leave the industry.
A report by AHDB Pork found that although pig production was consistently higher in 2015 and 2016, retail purchases of pork have been decreasing.
Together these factors have contributed to the fall in pig prices, which are currently at a near eight-year low.
Stephen Howarth, AHDB Pork market specialist manager, explains: “The report has been produced against a backdrop where production continues to rise as efficiency and productivity improve and record weights are being seen.
“This all leads to more pig meat on the market. At the same time, demand for pork has dropped, even though the price is falling.
"UK pork is having to battle hard against cheaper EU imports, exacerbated by the weakness of the euro against sterling and a supply glut on the continent due to increased production and closure of trading routes to major export partners.”
To read the report visit: http://pork.ahdb.org.uk/media/271132/pig-market-crisis-briefing.pdf
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