GB pig prices fall sharply

The EU-spec SPP fell in the latest week ending 2 October, by 4.75p to 148.82p/kg. The SPP is now nearly 10p below where it was a year ago.

It is likely that the measure was influenced by some particularly low prices paid by abattoirs for batches of pigs outside contracts, as the market finds an outlet for some pigs killed with only minimal butchery. This could be the case for several weeks to come, depending on how long there is a backlog of pigs on farms. The EU market is oversupplied, and falling pig prices there will also be having an influence on the price of all British pigs.

Slaughter at GB abattoirs was estimated to be 194,700 head during the week, 7.5% higher than the week before and 11% above the same week a year ago. This is the third-highest weekly kill of the year. As mentioned previously, keep in mind that these are estimates, the accuracy of which can be affected by unusual circumstances.

Carcase weights averaged 90.93kg, 700g heavier than even last week, and more than 4kg heavier than the same week a year ago.

In the week ending 25 September, the EU-spec APP fell by 0.89p from the week before, averaging 158.95p/kg. This measure is now 4.33p lower than the same week a year ago. The gap between the APP and SPP narrowed to 5.38p.

How the Standard Pig Price is calculated

• The SPP reflects the price of all standard pigs bought by GB processors in the previous 7-day week and is a simple average of all the prices paid in that week alone. The SPP in any one week makes no reference to previous weeks’ SPPs.
• For example, if there are 80,000 pigs in a particular weekly sample, then 80,000 individual prices are collected and averaged.
• The SPP cannot take account of how each individual price was arrived at. Some pigs are bought at a spot price, most are on longer-term contracts. Contracts can have any number of pricing elements in them, such as a reference to the cost of production, a weekly contribution, another published price, and might include an older published SPP (or an average of several older SPPs).
• All standard pigs are included in the SPP. Whether or not a pig is “standard”, is determined only by the way in which it was reared, not the way in which its price was determined, and not the level of its price.

Subscribe to receive pork market news straight to your inbox. Simply complete our online form.

While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.

All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at info@ahdb.org.uk  © Agriculture and Horticulture Development Board. All rights reserved.