The volatility of the pig price cycle of high prices followed by increased production and low prices over the past seven months have deepened the financial crisis facing pig farmers.
The hope was that at a price of €1.42c/kg, the price was at the bottom of the price cycle. However, this week, Ireland’s largest pig processor, Rosderra lowered quotes by 4c/kg and were joined by Kepak. Both Dawn Pork & Bacon and Staunton’s in West Cork, informed suppliers that they would hold prices but strongly indicated that a cut was imminent.
With many pigs receiving €1.38 base price today, it is no exaggeration to state that Ireland’s third largest agri sector is in a financial crisis and the outlook is bleak for the months ahead. IFA pigs Chairman, Tom Hogan, said that pig farmers were both shocked and despondent after news broke last Friday of a pig price cut.
Ireland’s percentage of the EU price has improved and is currently 96% of the EU average price as reported to the EU Commission for the week commencing 09/07/2018.
Factory pig throughput in Republic of Ireland export plants for the week ending July 14th 2018 was 63,996 head which was 917 head less than the previous week and 5110 more than in the corresponding week in 2017.
Top prices on a flat rate basis </= €1.38c/kg in Kepak and Rosderra, and </= €1.42/kg in Staunton’s, Dawn Pork and Bacon and Cookstown.
Sows: 55c/kg DW
Week-ending 14/07/2018 Pigs: 63,996 Sows: 1,679
EU-27 PIGMEAT REFERENCE PRICE WK COMMENCING 09/07/18
Irish price €1.41kg
EU–27 average price €1.46kg
(Grade E pigs – 55% to 60% lean meat excluding VAT but including transport and bonuses).