As new figures highlight the staggering losses pig producers are currently enduring, the need for pig price increases becomes even more stark, according to Thames Valley Cambac.

AHDB estimates the current reported cost of production at 203-216p/kg on the back of soaring feed, energy and fuel costs. With the SPP around the 150p/kg mark and carcase weights averaging of 94kg, this puts estimated losses at around £46-£61 per pig sold into the supply chain.

“Our market does not have time to take stock, prices must continue to rise, with everything else,” TVC said in its latest market update.

“Contributions for this week have stalled, where used as one element of pricing in some contract deals, although the other elements have risen. Smaller and medium sized buyers without the same price configurations have continued contributing a reflection of SPP and Tribune prices combined and halved, or around 4-5p/kg.”

The SPP was up 3.56p rising above the 5-year average by 2p at the start of Q2, which is much-needed, while the German market stood for the first time in a while. The sow market has stood on ahead of the two short weeks over Easter.

“So, there is still some way for prices to go before our industry is through its biggest challenge in decades. Let us hope the two short weeks ahead allow us to keep nibbling away at the backlogs,” TVC added.

 

By Alistair Driver / Pig World

Easter and the Islamic festivals have provided a boost to both prime lamb and cull sheep prices across the UK.

Prime lamb prices have reached the highest levels since the festive period.

In Scotland, the market cleared 268p/kg in the week to April 6, according to Quality Meat Scotland (QMS).

Iain Macdonald, QMS senior economics analyst, said the upturn was likely driven by increased demand at the start of Ramadan, followed by Easter.

For cull sheep, ewes and rams were averaging £107 per head in late March and early April, up from an average of £92 in the first 12 weeks of the year.

Glesni Phillips, Hybu Cig Cymru (HCC) data analyst, said cull ewe prices at Welsh markets had been increasing week on week since February, peaking at £106.90/head during the week ending April 2.

“This record high reflects the demand for sheep meat following the start of the Ramadan festival at the beginning of the month,” she said.

The average eased the following week but was 33 per cent higher than the 5 year average and the festival of Eid in May could provide further support.

 

 

by Alex Black / Farmers Guardian

Pig producers are currently losing, on average, between £46 and £61 per slaughter pig, with costs of production typically above the £2/kg mark, according to AHDB.

These staggering losses and costs of up to 216p/kg highlight yet again the urgent need for pig prices to rise beyond £2/kg so that producers can get back to break-even point.

The most recent AHDB quarterly cost of production estimation for 2021 Q4 after showed the full economic cost of production had risen to an estimated 193p/kg deadweight, with pig margins per slaughter pig estimated at -£39 per head. This followed average losses of around £25/pig in Q1 and Q2, and lower losses in Q3.

“Since then, energy and feed prices have continued to rise and pig prices have failed to keep pace with the situation, leading to greater loses,” AHDB analyst Carol Davies said.

“Continued (sometimes regionally related) backlogs of pigs on farm, low pig prices compared to cost of production, and increasing input prices, are resulting in very difficult decisions for many pig producers due to their need to continue managing their business risks and their business cashflow.

“Some producers have already decided to either significantly reduce stock or stop pig production. This will be driven by the individual farm situation and resources, including the significance of pig production at a total farm level and whether they have other enterprises or diversification. This could lead to short or long-term supply issues for UK-produced pork.”

 

By Alistair Driver / Pig World

The Negri Sembilan Veterinary Services Department (JPVNS) has confirmed that the African Swine Fever (ASF) was detected at a farm in Kampung Baru Tanah Merah Site A, in the town of Port Dickson, Malaysia.

According to a report from Malay Mail, Datuk Bakri Sawir, the State Agriculture and Agro-based Industry Committee chairman, said the disease was detected after samples were taken from two of the 275 pigs at the unlicenced farm.

JPVNS has taken steps to seal off the area and has increased personnel monitor around five-kilometre radius of the area to ensure there was no movement of livestock in or out.

“We received information about the disease on Thursday, JPVNS took samples on the two animals and they were found to have severe fever after the results came in yesterday evening,” said Mr Sawir.

“We could not get the cooperation of the farm owner as to how the animals were infected but according to unconfirmed reports, the origin of the infection was probably when the animals were brought in from Perak, but investigations are still underway.”

 

 

By Iain Hoey / Pig World

The overall average deadweight cow price in GB reached 351.6p/kg in the week ending 9 April, up another 12p on the week before.

The measure was up 78p from the same week in 2021.

The number of cows slaughtered during the week at British abattoirs was estimated to be 9,200 head, up 4% from the week before and up 16% from the same week a year ago. The same week in 2021 contained Easter Monday, explaining some of the increase.

Year-to-date cow kill was estimated to be 148,000 head, down 2% from the same period in 2021.

For finished cattle, the GB deadweight all-prime average stood at 432.2p/kg, up 6p on the week before. The measure was 33p ahead of the same week a year ago.

An estimated 32,300 prime cattle were slaughtered in GB during the week. This was largely unchanged from the week before, but up 12% from a year ago; again, likely due to the 2021 bank holiday week.

 

 

 

Hannah Clarke / AHDB

 

By Katie Prescott / BBC

UK beef exports to the US are frozen for the remainder of 2022, with the blockage set to hit UK exporters.

The UK transported 2,574 tonnes of beef worth £11 million in 2021 and £1.3 million in January 2022, but the US quota for this year has already been filled.

Dr Phil Hadley, AHDB international market development director, said: “Quota levels and the 26.4 per cent tariff on further shipments mean that UK and other EU exporters who use the Other Country (OC) specific quota will no longer be price competitive and will therefore cease to ship to the US.”

UK access is predicated on availability of 60,000t of OC quota.

But beef from Brazil and Central American countries comes under the same allocation, meaning the UK is affected by Brazilian exports.

“Brazil’s BSE case and subsequent bans in China meant that they have switched volume to US,” said Dr Hadley.

“The result is a rapidly filled quota with impact on others who use this route.”

 

by John Wilkes / Farmers Guardian

The EU still remains a key market for beef exports, representing 71% of beef shipments from the UK, but AHDB says third country markets are growing.

 

Farming UK

 

In recent weeks, cull cow prices have been climbing, with the GB overall cow price reaching a record breaking high last week.

In the most recent week, ended 12 March, the price climbed a further 7p, to 316.7p/kg. Meanwhile, the GB all prime average increased 2.1p, to 410.8p/kg. The clean cattle premium over cows is now at one of narrowest points on record.

Estimated prime kill for the week totalled 31,100 head, 400 head fewer than in the same week last year. Meanwhile, estimated cow kill fell 800 head to 9,800 head. Availability of prime cattle in the coming year is likely to remain tight compared to historic levels.

There is an increased numbers of younger animals on the ground compared to January 2021, but numbers are lower than 2 years ago. At the moment, processors are competing for supplies, which is supporting prices.

 

Rebecca Wright / AHDB

Finished lamb prices fell in the latest week. The GB liveweight OSL SQQ was 259.10p/kg in the week ending 16 March, down half a penny on a week earlier.

Good supplies were available; auction market throughputs were 7% higher than a week ago, at 114,400 head.

Deadweight prices didn’t fare any better, the SQQ falling by more than 9p to 565.1p/kg in the week ending 12 March. Those carcases meeting the R3L spec fell by 6p to 570p/kg.

Estimated slaughter in the week was 222,000 head, another strong week, and 17% more than in the same week last year. In the year so far an estimated 2.12m clean sheep have been sent forwards, 5% more than at the same point a year ago.

 

Duncan Wyatt / AHDB