European pig prices reach 22-month high
“A tightening of supply against a backdrop of increased demand is causing this strengthening of the market with tighter supplies in some member states having occurred earlier than forecast,” said AHDB Pork.
“Domestic demand has been supported by the barbecue season, which is well underway in northern Europe, while the tourist season is in full swing in the south of the continent. Furthermore, export demand, particularly for China, continues to hit record levels.”
The EU reference price for the week ended July 24, was €162.54/100kg (£137/100kg). This was an increase of over €18 (£15.17) on the same point a year ago with all the major producing states recording rising prices over the latest four weeks.
“Both the increasing momentum of the EU market, coupled with the weakening pound following the Brexit vote, meant that the UK reference price continued to fall behind the EU price,” said AHDB Pork, adding that the EU average price, as at July 24, was just under 9p/kg more than the UK price. ■