Pigs Marketing Report

Marketing report for week commencing 6th September 2010 DAPP figures, are reported prices for W/E 28th August 2010   This week Change Same week  2009 GB DAPP(EU) 142.87 - 0.57 152.00 - 0.28 GB DAPP(UK) 140.30 - 0.57 149.27 -0.29 DAPP figures supplied by MLC Economics Avg D W and P2 in DAPP sample Average D W Average P2 79.20 11.3 Same week 2009 Average D W Average P2 78.78 11.1    Monthly Periods Jul-10   Jun-10 May-10 Apr-10 Last Year Slaughterings:  Finished pigs 855,150   684,278 693,063 854,238 884,553 Slaughterings: Sows 15,100   15,199 16,300 21,048 20,223 Weekly average Finished pigs 171,030 171,030 173,266 170,848 176,911 Weekly average Sows 3,020 3,800 4,075 4,210 4,045   European Prices Week End 29th Aug 22nd Aug Change  Denmark 109.95 112.62 - 2.67  France 112.19 112.49 - 0.30  Germany 124.23 127.64 -2.41     Week End 29th Aug 22nd Aug Change  Holland 113.40 113.73 -0.33  Ireland 114.21 114.55 -0.34  Spain 129.85 133.98 -4.13 Key    n/c=No change    n/q=Not quoted    n/a=Not available Unless stated otherwise all figures are positive (+)

Time For a Leg Up?
We might have expected with the last Bank Holiday behind us (Xmas excepted) and glorious ‘bar-b-q’ weather, for trade to hold if not begin to harden. It was very disappointing therefore to see the main non-DAPP contracts lose a further penny today. There is an increasingly uncomfortable divergence between pig sale prices and pig input costs. As carcase values fall, activity in the grain market over the past week saw cereal delivery prices over the upcoming months gaining £5-£8/tonne.
The pig production sector has enjoyed a much needed period of profitability, but for how much longer? With a typical COP around 135p/kg dw, nett returns could soon be coming back around that level. There needs to be a major cultural shift in Retail Buyers outlook very soon. The latest Kantar data reveals that over the last 12 months, volume sales of fresh/frozen pork have increased by 4%, retail prices are down by 2.4%, with overall expenditure up by 1.5% and even this masks the shift to ‘cheaper cuts’ such as shoulder joint roasts up 49%, with higher value leg joints recording a12% fall.
Against other red-meats, pork sales have justifiably done very well – demand is good, pig supply is only up by around 2% – so why are farm-gate prices down by almost 8% over that period? Where is that entire ‘extra margin’ going? Questions need to be asked urgently, as feed price inflation is now a reality and no longer just a risk!
Meadow Quality remains committed to working on behalf of pig producers and we are delighted to announce that Kevin Bird has joined us. He brings with him a wealth of pig production and feed sales experience and we look forward to him becoming a valuable member of our pig marketing team, extending our coverage into Yorkshire and t’north!
He may be contacted on 07736 056713.




 
Simon Davies - 07711 878947
Matthew Banks - 07715 537006  

30.07.10 WEANERS FOR SALE!

300 weaners for sale in Lincolnshire - 35kgs indoor, fully vaccinated PCV2 and EP, farm assured, tail docked, LR/LW female lines x 337 boars.  Really strong pigs with a good conformation. 300 7kg weaners - high health indoor, not vaccinated, farm assured, tail docked, JSR stock regular supply, also in Lincolnshire 150 ACMC weaners each month in Norfolk, fully vaccinated, farm assured, indoor born and tail docked. For more information on any of the above, please contact Simon Davies on 07711 878 947