IFA PIGMEAT MARKET REPORT
04/07/08 Pig Price Changes
Country Price Change c/kg Current Price (Approx.)
Ireland Rosderra n/c 1.54- 1.58 (Incl.VAT)
+2-6c/kg ‘Welfare’ pigs
Dawn n/c 1.56- 1.60
Pork Slaughters n/c 1.56 -1.60
Northern Ireland N/c 1.60-1.63
Denmark N/c 1.49 (inc bonus)
UK N/c 1.68 (DAPP)
Holland N/c 1.58
France +3 1.57
Germany +5 1.70 (56% LM)
Belgium +6 1.54
Spain N/C 1.73
Pig News Update:
Irish prices have been static for the entire month of June following a 6c/kg increase the last Friday in May.
This has meant that Rosderra continue to trail the other major Irish slaughterers in the country by
approximately 4c/kg. The northern Irish plants have been leading in terms of returning higher pig prices
(paying up to 1.63/kg to some producers). The UK spot price has far exceeded the BPEX DAPP price over
the last number of weeks by 8-10c/kg.
Prices did fall in a number of the major EU pig producing countries at the start of the month (Holland,
Belgium, Spain, Austria and Germany), however prices in Denmark and France were static or rising. This
drop has been attributed to the German slaughter companies in particular over supplying the market causing
their neighbouring countries prices to decline. Only minor decreases were recorded in Bulgaria, Greece and
Poland while some eastern block countries (Latvia, Hungary, Slovakia) all recorded increases from May to
June 2008. The result of this was that the EU average in June rose from to €1.65, which is €0.15/kg more
than the Irish June average.
The EU average pig meat price in June 2008 was 15.1% higher than it was in June 2007. The biggest year
on year price increases were seen in Poland, the Czech Republic and Hungary (+30% YOY), although
increases of approximately 20% were seen in Germany, the Netherlands and Belgium YOY. Sources had
expected EU prices to remain static however increases were seen today in Germany, Belgium and France.
Irish wholesale pigmeat prices have seen a considerable increase in the last year (a fact which the factories
will not argue with), however wholesale prices for loins and legs came under pressure last week. Due to the
limited supply of live animals across the continent and projected sunny (EU) weather forecasts, this however is expected
to be a blip in the market that should recover as quickly as it decreased.
Globally the curve has been upwards since the start of May 2008. This is being driven by the stabilised
pricing patterns in Denmark, the USA and Canada. The Danish price is actually above the world price for the
first time since September 2006 and although the Canadian price has not broken through at this stage there
has been a steady recovery.
Floods in June in the US have swamped an estimates 2 million acres of corn and soybean in Iowa, Indiana,
Illinois as well as a number of other states is a cause for considerable concern. A reduced US harvest will
result but this is also driving increased meat prices in the US. The June US grain survey was redone at the
end of the month to take into account as much of the fall off in yield as possible but further flooding could
render even this report worthless. Maize sowing estimates range from 83.5/86.4 million acres (versus the
March estimate of 86m). Disparity is evident with the Soya estimate said to be somewhere between 72 and
76m acres. There is also concern about the slow emergence of soyabeans sown later than usual. Soya that
will be planted in the USA next year will not be available to EU producers. It is vital that all pig producers
stay in contact with their local public representatives on this matter. The issue of the slow approval of novel
feedstuffs and the zero tolerance for GM feedstuffs has not yet been rectified.
Compiled by Amii Cahill, Executive Secretary, National Pigs & Pigmeat Committee.
While every effort is made to ensure the accuracy of the information in this edition of the IFA market
report, the Irish Farmers Association does not accept responsibility for any errors that may occur in it.