AHDB Pig Market Weekly
25 May 2012
AHDB UK Market Survey - 25 May 2012
HMRC data shows that in the first quarter of 2012 the UK
exported a fifth more red meat offal than it did in the
corresponding period of 2011, with volumes totalling
13,700 tonnes.
UK offal exports grow
With higher prices being paid the value of
this trade increased 37 per cent to £12.2 million. This
increase in trade was against a drop in production of five
per cent.
The bulk of this offal was from pigmeat production with
this product representing well over half of red meat offal
exports. Shipments of this totalled 9,100 tonnes, an
increase of 22 per cent on 2011 levels. The main
destination was the Netherlands which accounted for over
a quarter of shipments. Overall EU-27 Member States took
two thirds of pigmeat offal exports from the UK with a
number of Asian countries also taking a significant
proportion. There was a considerable increase in the unit
values of these exports with the total value increasing by
56 per cent to £7.0 million.
Exports of sheep offal almost doubled to 1,300 tonnes. The
vast majority of these shipments were destined for the EU.
However the importance of the non-EU market grew,
accounting for over a fifth of shipments compared with
only nine per cent a year before. The value of these
exports also nearly doubled to £1.6 million as unit values
increased slightly.
Beef offal volumes went against the trend and recorded a
marginal decrease, to 3,300 tonnes, as production was
eight per cent lower due to fewer cattle being slaughtered.
The majority of shipments went to non-EU trading
partners, accounting for 53 per cent of volumes. Within
these markets the main trend was large increases to various
African countries generally at the expense of far eastern
markets. The value of these exports increased by almost
one per cent to £3.6 million as a result of slightly increased
unit values.
Exports of poultry offal were also higher than 2011 levels,
recording an increase 57 per cent to total 9,000 tonnes.
Non-EU markets accounted for almost three quarters of all
poultry offal exports with a number of Asian and African
countries recording considerable increases on 2011 levels.
Unit values were also higher with the total value of these
exports up almost two thirds at £5.6 million.
Cattle market trends
Prices
Deadweight cattle prices continued to ease
downwards in week ended 19 May as demand
was still not keeping up with supply. R4L steer
prices fell two pence to 342.7p per kg, R3 young
bulls were down over two pence at 328.5p per
kg while R4L heifers were down over a penny at
341.1p per kg. Cull cow values were also lower
with –O4L grades slipping three pence to 276.7p
per kg.
The liveweight trade in week ended 23 May
showed a marked rise with the all prime average
recovering much of the previous week’s decline
being up almost two pence at 185.6p per kg.
Steers were up over two pence, heifers by nearly
two pence and young bulls by over three pence.
This was despite overall numbers increasing four
per cent as a result of a 20 per cent increase in
young bull throughputs. The much improved
weather this week can’t have hurt consumer
demand which has obviously in turn led to
processors requiring more cattle.
Cull cow values have also benefitted from this
upturn with the overall average increasing by
over three pence on week earlier levels to 128.8p
per kg.
Regional slaughterings
UK prime cattle slaughterings for April remained
well below 2011 levels as supplies continued to
be tight on the back of lower calf registrations in
recent years and the decline of the breeding herd.
Heifer numbers recorded a decline of seven per
cent year on year while steer throughputs fell two
per cent. Young bull numbers recorded the
largest fall being down 12 per cent reflecting the
low levels of dairy male retentions in late 2010
and early 2011. The decline in prime cattle
numbers were played out across all regions of the
UK. This has the potential to have been
somewhat skewed by the fact April 2011
included two extra bank holidays which will have
disrupted processing to some degree.
Cull cow throughputs recorded their first increase
of 2012, being up four per cent year on year at
48,000 head. Again the difference in bank
holidays will have had some influence on this.
Adult bull throughputs for April were down 14
per cent on the year.
Prime cattle carcase weights were up by over one
per cent while cull cow weights fell slightly.
Overall beef and veal production fell three per
cent to 84,000 tonnes.
Sheep market trends
Prices
Following the price increase of the previous week
deadweight lamb prices in week ended 19 May
resumed their downwards trend. At 412.8p per kg
the OSL SQQ was down a comparatively modest
penny and a half, however this trade is almost
completely finished now and this is the last reported
old season price of 2012. New season values
recorded a fall of over 10 pence to average 456.9p
per kg erasing all the gains of the previous week.
Liveweight lamb prices in week ended 23 May
continued to fall with NSL SQQ down six pence at
204.6p per kg. With the end of the OSL trade in
sight prices continue to drop. The latest SQQ was
down 13 pence to average 166.3p per kg as the tail
end of the season is bringing out poorer quality
animals.
Regional slaughterings
UK lamb slaughterings for the month of April were
marginally lower than 2011 levels having totalled
958,000 head. English and Welsh throughputs
remained below 2011 levels registering a one per
cent fall, these two countries still account for the
vast majority of slaughterings. Scottish numbers
were up by around one per cent while Northern
Irish throughputs remained well above 2011 being
29 per cent higher. This is still the result of fewer
lambs being exported live to the Republic as their
domestic supplies remain considerably higher than
2011 levels.
Weights in April were lower month on month; a
seasonal pattern resulting from increased numbers of
lighter new season lambs being processed. However
at 19.7kg they were still higher than 2011 levels
reflecting that even new season animals were
heavier than they were a year ago due to the good
seasonal conditions in late 2011 and early 2012.
Adult sheep slaughterings in April followed the trend
set so far this year, being well below 2011 levels.
For the month throughputs of these sheep totalled
158,000 head a decline of eight per cent year on
year. Carcase weights for these adult sheep remain
well above 2011 levels being up three per cent.
The higher weights for both lambs and adult sheep
almost completely offset the lower numbers being
processed. Total mutton and lamb production for the
month was almost on a par with 2011 levels at
23,200 tonnes.
As with cattle it should be noted that April 2011
included two extra bank holidays which will have
disrupted processing to some degree.
Pig market trends
Prices
Deadweight pig prices continued their seasonal
upward trend during week ended 19 May, with the
EU-spec DAPP rising by 0.63p to average 149.02p
per kg. In recent weeks, the rate of increase has
been lower than during the spring of 2011 as poor
weather reduced consumer demand and the
weaker euro reduced the competitiveness of British
pig meat. Estimated slaughterings remain
comfortably above 2011 levels, another reason
why the price rise is less rapid than a year ago.
The weaner market remains difficult, with
finishers reluctant to take on higher numbers
while feed prices remain high. The average 30kg
weaner price eased back by a few more pennies
to £44.21 per head for week ending 26 May, its
lowest level since before Christmas.
The weakening of the euro has led to some
easing back of the cull sow price since late March
as the GB price tends to be close to the price in
Germany, the main market for sow meat. The fall
in prices continued during week ended 19 May
with the average price dropping just over a penny
to 116.42p per kg dw.
Regional Slaughterings
UK clean pig slaughterings in April 2012 totalled
934,000 head, five per cent higher than in April
2011. Both England & Wales and Northern
Ireland recorded increased clean pig
slaughterings, up six and seven per cent
respectively. Scottish throughputs were down
four per cent, reflecting the reduction in the
Scottish herd recorded in the December census.
Nevertheless, Scottish clean pig throughputs in
the first four months of 2012 were still seven per
cent higher than a year earlier. Across the UK,
total clean pig slaughterings in the year to date
were three per cent up year on year at 3.41
million head.
Slaughterings of cull sows and boars during April
totalled 24,500 head, almost all in England. This
was four per cent higher than AHDB’s estimate
for April 2011. Throughputs for the January to
April period were two per cent above year earlier
levels.
The average clean pig carcase weight during
April was marginally higher than a year earlier at
77.8kg, as was the average carcase weight for
cull sows and boars at 152kg. The net result was
that total pig meat production in April was six per
cent higher than a year earlier at 76,000 tonnes.
Total production for the year to date was up three
per cent at 282,000 tonnes.
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