AHDB Pig Market Weekly
30 March 2012
AHDB UK Market Survey - 30 March 2012
There have been an increased number of heavier lambs marketed in 2012, largely as a result of the much improved seasonal conditions and feed availability over the last year.
Increased number of heavy lambs at auction
In addition, having paid considerably higher prices for store lambs, finishers may have been looking to recoup this expenditure by adding additional weight to their lambs.
In week ended 24 March the number of heavy lambs (45.6kg to 52kg) at GB auction markets represented almost 28 per cent of total throughputs while those over 52kg (others) accounted for 11 per cent. At the same time last year the figures were 24 per cent and six per cent respectively. The situation was more prevalent in England where 32 per cent of throughputs were in the heavy category and over 13 per cent weighed more than 52kg. In Wales these figures were 25 and 10 per cent respectively while in Scotland they were 19 and five per cent respectively.
The average price for heavy lambs in week ended 24 March was 195.6p per kg, 19 pence lower than the SQQ average. Lambs weighing over 52kg were 40 pence behind the SQQ value at 175.1p per kg and 10 pence cheaper on the year. In the corresponding week in 2011 heavy lambs traded eight pence below the SQQ while those weighing over 52kg were 25p per kg below the SQQ. In contrast, with more options available and increased competition for lambs in the SQQ weight band in week ended 24 March the price of lambs in all the SQQ weight bands were higher than year earlier values.
While these figures indicate that prices for heavy lambs are lower on a pence per kg basis the higher weights are returning high per head values to producers. In week ended 24 March heavy lambs averaged £94 per head while those over 52kg averaged £98 per head. Although in both cases, these prices represented no change on the corresponding week in 2011, amidst these averages there are numerous reports of old season lambs breaking the £100 per head barrier.
Cattle market trends
Prices
Cattle supplies in GB remain tight with prime
cattle slaughterings in the first three weeks of
March estimated to be seven per cent lower than
in the corresponding period of 2011. Reports of
cautious consumer spending exerted some
downward pressure on prices in week ended 24
March. Despite this, as processors attempt to
balance this with ensuring adequate supply,
prime heifer and steer prices were broadly level
with the week earlier at 339.9p per kg and
340.9p per kg respectively. The young bull
price declined four pence on the week to
318.7p per kg.
In week ended 28 March, average prices for prime
cattle at GB auction markets increased by two
pence on the week to average 191.6p per kg. All
categories of prime cattle were more expensive on
the week with steer prices recording the largest
rise, up four pence to 192.6p per kg.
Reports suggest that cow values are particularly
dependent on classification at the present time,
with dairy cow prices proving harder to maintain
than prices for beef cows. The average price of
dairy sired cows at auction eased a penny on the
week to 123.1p per kg while the average beef
sired cow price strengthened over a penny to
147.1p per kg.
Regional slaughterings
In February 2012 throughputs of prime cattle at
UK abattoirs totalled 159,000 head, down six per
cent year on year. Continued tight supply of cattle
meant that there were reductions in all categories
of cattle in most regions of the UK. The exception
to this was slaughterings of steers in England and
Wales where a small increase was recorded. In
the UK as a whole there was a 15 per cent decline
in young bull throughputs, heifer numbers
decreased by seven per cent, and steers were
down by three per cent. Northern Ireland
recorded the largest declines in all categories of
prime cattle, young bull, heifer, and steer numbers
down 17, 16, and 13 per cent respectively.
With carcase weights only marginally above
those recorded in February last year, UK beef
and veal production also declined by six per
cent on the year to 70,100 tonnes. Production
from cows and adult bulls was 10 per cent lower
year on year at 14,300 tonnes while from prime
cattle declined five per cent to 55,500 tonnes.
Sheep market trends
Prices
In week ended 24 March the deadweight lamb
trade responded to the uplift in the liveweight trade
and increased 15 pence on the week to average
458.6p per kg. Supplies were tight with estimated
slaughterings down both on the week and on year
earlier levels.
Liveweight prices were under some downwards
pressure in week ended 28 March, the old season
lamb SQQ declined marginally to 213.2p per kg. The
excellent weather may have put a dampener on
prices as processors and retailers attempt to avoid a
repeat of last Easter when the fine weather resulted in
a decline in consumer demand for lamb, especially
roasting joints. Prices on Monday, Tuesday and
Wednesday were all back on the week. In addition,
producers appear to have responded to the better
prices on offer in previous weeks. Overall lamb
throughputs at GB auction markets were up 13 per
cent compared to the week earlier.
New season lambs are steadily coming to market in
increasing numbers. The new season lamb SQQ
increased eight pence on the week to average 245.2p
per kg. This was undoubtedly helped by a number of
Easter shows and sales held during the week.
Regional slaughterings
Throughputs of clean sheep in the UK in February
totalled 788,000 head, five per cent lower than
year earlier levels. All regions recorded a five per
cent decline in throughputs, with the exception of
Northern Ireland, where slaughtering increased by
a third.
Adult sheep slaughtering in the UK were 14 per
cent lower on the year at 138,000 head. This was
driven by a 14 per cent decline in throughputs in
England and Wales where the majority of adult
sheep slaughtering take place. Scotland reported a
32 per cent decline in throughputs while in
Northern Ireland there was an increase of 15 per
cent. The increased throughputs of both sheep and
lambs at Northern Irish plants were helped by an
18 per cent decline in the number of live direct to
slaughter exports into the Republic.
With increased numbers of heavier lambs being
marketed carcase weights increased almost one
kilogramme compared with February 2011. As a
result the lower slaughterings were offset to some
degree and sheepmeat production declined four
per cent on the year to 19,100 tonnes. In the year
to date production totalled 42,600 tonnes, also
four per cent lower than in the corresponding two
month period in 2011.
Pig market trends
Prices
The continued strengthening in pig values took the DAPP to 142.35p per kg week ended 24 March, up almost a penny on the week. This rise is being driven by a tightening of supply and relative firm demand for pork. As a result of the latest increase the DAPP was over four per cent higher than in the same week last year. There was a marginal change in the quality of pigs at slaughter with both the average weight and probe measurement declining fractionally on the week to 78.9kg and 10.7mm.
Electronic Movement Licenses
The eAML2 electronic pig movement system becomes compulsory from 1 April in England and Wales. To be legal, all pig movements after that date must be reported through the eAML2 system, either by setting up the movement online at www.eaml2.org.uk or by contacting the eAML2 Bureau Service on 0844 335 8400. The new system replaces the paper AML2 forms, which will no longer be valid.
Regional slaughterings
UK clean pig slaughterings in February totalled
767,000 head, less than one per cent higher
than in February 2011. Once again, Scotland
recorded an increase in throughputs, with
slaughterings up eight per cent to 52,000 head.
Throughputs in Northern Ireland were one per
cent higher than a year earlier, while numbers
in England and Wales were marginally lower.
The total number of clean pigs slaughtered in
the first two months of the year was three per
cent up year on year at 1.71 million head.
Slaughtering of cull sows and boars during
February totalled 19,200 head, almost all of
which were in England and Wales. This was
about six per cent below AHDB’s estimate for
February 2011. Despite this decline,
throughputs in the year to date were five per
cent above year earlier levels, given the high
slaughterings in January.
Average clean pig carcase weights in February
were marginally lower than a year earlier at
79.3kg. The average carcase weight for cull
sows and boars was 150kg, higher than a year
earlier. The net result was that total pig meat
production in February was unchanged year on
year at 64,000 tonnes. Production in the year to
date was up two per cent on the year at 142,000
tonnes.
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