Enter price inflation pressuring markets
8 September 2023
2 minute learn
Since hitting a file excessive of 215.47p/kg within the second final week of July, EU pig reference costs have been in regular decline, shedding simply over 12p/kg in 4 weeks, reported Freya Shuttleworth of the UK’s Agriculture and Horticulture Growth Board (AHDB).
Shuttleworth attributes a lot of the decline to easing demand, whilst slaughter numbers stay low. Unfavourable climate in some areas seemingly restricted the BBQ market, she mentioned.
Increased pig costs have additionally been driving up the unit worth of exported product. “It is a return to extra regular traits that we have now seen during the last couple of years, with the value distinction in current months trending at historic lows,” Shuttleworth mentioned.
The speed of decline has been blended throughout the continent. The biggest worth decline was recorded in Poland, the place costs fell by 20.7p over the interval (23 July–20 August). Polish pig costs have been falling for seven consecutive weeks having peaked in early July.
In the meantime, Danish pig costs have been comparatively flat because the starting of June. Belgium, France, Germany and the Netherlands have all misplaced between 10–15p/kg within the 4 weeks ending 20 August, with essentially the most important adjustments being recorded within the remaining week. Spain has seen barely smaller actions, with costs shifting downwards simply shy of 8p within the final 4 weeks – over 4p of this occurred in the newest week.
In response to Shuttleworth, European pig farmers are going through monetary pressures resulting from skyrocketing enter price inflation. Prices have eased in current months, she mentioned, nonetheless, they’re more likely to stay traditionally excessive as the worldwide financial system continues to get better. Processors are additionally going through inflationary prices, which has led to decrease kill volumes and tightened margins. In some case, this has led to restructuring, together with the closure of processing amenities.
