EU pigmeat prices weaken over the summer

EU pig prices have weakened in recent weeks, suffering from poor barbecue demand at a time of high supplies.

The Deadweight Average Pig Price (DAPP) fell to an EU average of €1.56/kg (136p/kg) in the week to 14 August – a drop of 1% since mid-July. This was due to poor summer weather eroding barbecue demand, said a report by AHDB Meat Services. "In addition, approximately 25,000t of pig meat was contracted for release from Private Storage Aid stocks in July and a further 35,000t in August."

Average prices were still almost 16% higher than in January, and 3% above the same week last year. "Despite this EU producers remain under considerable pressure, with feed prices averaging 40% more than a year earlier."

UK reference prices remained the highest of all the major EU pigmeat producing countries in Euro terms, largely due to the weak value of Sterling, said the report. Since mid-May values had remained strong, averaging €1.67/kg (146p/kg) in the week to 14 August, 1% lower than the same week last year. "The UK’s price premium over the EU average has fallen from 16% in January to 7% in recent weeks."

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