Pig Price Remains Below the Cost of Production
No change in the Irish pig price for this week, but the mood has definitely changed and the talk of sluggish markets and plentiful supply of pigs has disappeared dramatically.
Pig farmers are still averaging a low pig price of €1.40-€1.42c/kg this week which is conservatively 10c/kg below today’s cost of production.
Looking at official factory prices published by the Department of Agriculture, last week’s price is 16c/kg below this week last year, and it was only around mid-February 2017 that the pig price rallied upwards.
The German pig price has increased by 10c/kg in recent days, and the number of pigs presented for processing has dropped significantly. IFA pigs Chairman, Tom Hogan, said Irish pig farmers have taken enough financial pain and he called on all processors to increase the pig price significantly, and he pointed towards the much-improved European market place, and increasing demand from Asian markets as justification.
Ireland’s percentage of the EU price has improved and is currently 103% of the EU average price as reported to the EU Commission for the week commencing 29/01/2018.
Factory pig throughput in Republic of Ireland export plants for the week ending February 3rd 2018 was 65,862 head which was 1,418 head less than the previous week and 5,011 more than in the corresponding week in 2017. Slaughterings in ROI export plants is 3.9% ahead the same period in 2017.
Export Plants: Top prices on a flat rate basis </= €1.40c/kg in Kepak, Rosderra, Staunton’s and Cookstown and </= €1.42/ €1.44c/kg in Dawn Pork and Bacon.
Sows: 60 – 75c/kg DW.
Weekly Slaughterings: Week-ending 27/01/2018 Pigs: 67,280 Sows: 1,905
EU-27 PIGMEAT REFERENCE PRICE WK COMMENCING 29/01/18
Irish price €1.38kg
EU–27 average price €1.34kg
(Grade E pigs – 55% to 60% lean meat excluding VAT but including transport and bonuses).
