Irish pig prices fell by 6c/kg last Friday which is a huge blow to farmers. Irish pig farmers are now reporting prices from €1.62 – €1.66/kg depending on where they fall on the graded pricing system. This reduction in price is really putting an immense strain on already eroded margins with the average producer now losing on average 30c/kg on every kilo of meat or circa €28/pig.
The work to rule planned strike for this Thursday is a significant added concern for the sector due to the impact still being felt from the previous action in October as a result of the factories not being able to process pigs. This is particularly important in the lead up to Christmas when shorter week for processing is expected.
The average price for grade E pig carcasses in week 44 was €1.46 (excluding VAT), reporting a reduction of 1.5% on last week’s average price. It represents a 4.8% drop in prices since last month, while prices sit -16% behind the same period last year.
The latest reports from both AHDB and agritel indicate slight drops in Paris wheat futures, Chicago wheat and maize. Improved global supply prospects, progress with the US maize harvest, lower oil prices and hopes of peace talks between Russia and Ukraine have placed downward pressure on prices. However, ongoing disruption to Black Sea exports and uncertainty around Chinese demand remain key factors and feed costs have only gone one way at farm level as of late. It is a very volatile and challenging time for pig producers.
