AHDB Pig Market Weekly
18 June 2012
AHDB UK Market Survey - 15 June 2012
Recent data from the British Cattle Movement Service (BCMS) indicated that the trend towards increased calf registrations, which became apparent in the last quarter of 2011, has continued through the first three months of this year.
Increased calf registrations
Recent data from the British Cattle Movement Service (BCMS) indicated that the trend towards increased calf registrations, which became apparent in the last quarter of 2011, has continued through the first three months of this year.
During January to March 2012 calf registrations in Great Britian increased by nine per cent, or 55,000 head, compared with the same period in 2011. The number of registrations over this time was almost 700,000 head, two thirds of which were registered as non-dairy animals.
The overall increase was driven by higher numbers of registrations across all categories of cattle. There was an eight per cent increase in female non-dairy calf registrations, which suggests there may potentially be longer term growth in the beef breeding herd if some heifers are retained. Non-dairy male registration also increased by eight per cent, indicating that we are likely to see an eventual upturn in male cattle slaughterings.
Dairy-bred female registrations were up five per cent on the year and representing a significant turnaround from the early part of last year dairy bred male registrations were 17 per cent up on the year. The firm beef prices and some easing in feed costs may have encouraged producers to retain these animals for finishing.
Cattle market trends
Prices
In week ended 9 June, as the Jubilee holiday
disrupted trade to some extent, the overall
prime cattle deadweight average price
strengthened to 334.2p per kg. Reports suggest
that the supply and demand position is still
finely balanced and a small increase in demand
could result in some further upward pressure on
prices. The price of R4L steers and heifers both
increased by a penny on the week to average
342.6p and 341.2p per kg respectively. The
price of R3 young bulls increased by a similar
amount on the week to 328.0p per kg.
Following last week’s three pence increase, the
average deadweight price of cows strengthened
a further two pence on the week to reach a year
peak of 269.0p per kg.
In week ended 13 June the average prime cattle
price at GB auction markets eased a little over
half a penny on the week to average 190.2p per
kg. The average price of steers and heifers both
declined by almost a penny to 191.4p and
194.6p per kg respectively, while the price of
young bulls increased marginally to 183.9p per
kg.
Retail price spreads
During May the average farmgate price declined
over one per cent compared to the month earlier
while the average retail price was little changed.
As a result the actual price spread between the
producer and the retailer narrowed slightly on the
month and producers received, on average 54
per cent of the final retail price during May. With
farmgate prices increasing to a greater extent than
retail prices during the past 12 months the latest
figure is two percentage points more than in May
2011.
Despite the average beef price being little
changed on the month some cuts were dearer,
with the exception of topside joints and sirloin
steak. The largest increase in price was recorded
by premium mince, increasing four per cent on
the month. Other cuts increased in price by
between one and two per cent.
In May 2012, all cuts of beef were more
expensive than in the corresponding month a
year earlier. Standard and premium mince both
increased in price by 16 per cent, while rump
steak was 10 per cent dearer on the year.
Sheep market trends
Prices
Reflecting the increased prices at auction markets
the deadweight lamb SQQ in week ended 9 June
increased seven pence on the week to 407.2p per
kg. This uplift was evidently the result of
tightened supplies due to the two bank holidays
and slaughterings were estimated to be
approximately a third lower than in the week
earlier.
The liveweight lamb trade in week ended 13 June
was relatively firm. The SQQ for the week was up
almost a penny on the week earlier at 200.4p per
kg. Lamb prices on Thursday 7 and Monday 11
June were still showing an upwards trend, however
by the end of the period they eased with the SQQ
on Tuesday 12 June down almost four pence on the
week and on Wednesday 13 June back almost two
pence. Despite this decline they still represent a
significant uplift from the position in late May.
However, with the post holiday restocking
appearing to be coming to an end the seasonal
decline in price is expected to reassert itself.
Cull ewe values increased three pounds on the
week to average £74.35 per head.
Retail price spreads
The much publicised decline in lamb prices
during May resulted in the monthly average
farmgate price falling by over three per cent on
the month to 436.5p per kg. At the same time
average retail prices increased by almost three per
cent. This resulted in the price spread widening
with the producer on receiving 55 per cent of the
final retail price in May compared with over 58
per cent in April.
Compared with May 2011, farmgate prices have
declined sharply while retail prices have
continued to edge up. On average producers
received 69 per cent of the final retail price in
May 2011. It should be noted that 2011 was an
exceptional year for farmgate lamb prices
resulting in a considerably higher proportion of
the retail price going to the producer. However
the latest figure is still lower than that recorded in
the corresponding month in recent years.
In May the majority of lamb cuts recorded an
increase in price compared to the month earlier.
Lamb legs recorded the largest increase in price,
up almost six per cent. Lamb steaks were the
only cut to record a decline in price and were
back one per cent on the month.
Pig market trends
Prices
Finished pig prices continued their seasonal
upward trend in week ended 9 June. The DAPP
EU Spec has increased by over a penny since the
beginning of May to average 149.45p per kg. This
comes despite changeable weather curtailing
barbecue demand. Supplies have been plentiful
since the turn of the year, with throughputs
comfortably above 2011 levels. Carcase weights
have also been heavier than in the first few
months of last year.
For week ending 16 June the average 30kg weaner
price eased back by a few pennies for the sixth
consecutive week to average £43.15 per head.
This year, high feed costs are again limiting the
willingness of finishers to take increased numbers
of weaners. The prices of weaners are at their
lowest level since early December.
DAPP sample increases
Following discussion by the BPEX board, the
sample of the dead weight average pig price has
been expanded to cover a broader spectrum of the
pig market. The DAPP will now be produced
using information from eight processors covering
15 sites. These are H G Blake, Cheale Meats Ltd,
Cranswick Country Foods, F A Gill, Tulip Ltd,
Vion, G Wood & Sons and Woodhead Bros.
BPEX will be looking to expand the sample of
participating abattoirs even further in the coming
weeks.
Retail price spreads
The average farmgate pig price in May was 149.0p
per kg, two per cent higher than in the month
previous. Over the month, the average retail price
only increased marginally. As a result, the gap
between producer and retail prices decreased
slightly to 60.5 per cent. This means that
producers received an average of 39.5 per cent of
the retail price which is marginally more than in
April but one percentage point less than at the
same point last year.
Although the average price of pork was little changed
on the month there were some price movements in
selected cuts. The largest price increase was for pork
fillet, which increased three per cent on the month.
Boneless shoulder joints and loin steaks were both
two per cent dearer than they were in April. In
contrast, diced pork was noticeably cheaper, with the
average price more than two per cent lower than in
the month previous. Compared with prices in May
2011 loin chops were less expensive, prices declined
four per cent on the year. Prices for most other cuts
were higher than a year earlier with the largest rises
for minced pork, boneless shoulder joints and pork
fillet increasing to the greatest extent.
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