The sustained recovery of pig prices since the spring has come at a time when retail pork prices have been fairly stable, AHDB Pork finds.
As a result, the share of the retail price received by producers has risen from a low point of 30% to reach 35% in July.
This was the highest figure since last September and almost the same as in July 2015.
Nevertheless, it remains well below the 40%+ share received by producers for much of 2014.
While pig prices in July were still 5% lower than the same month last year, retail prices had also fallen by the same percentage, on average.
Although overall retail prices were stable in July, there was some movement for individual cuts, according to AHDB’s retail price survey.
And UK pork exports continued to increase into June with volumes up 26%, to 18.4 thousand tonnes, on the year earlier, according to AHDB Pork.
Chinese shipments continued to be the main driver behind this growth, with volumes up 81%.
Exports to Ireland were also up 28%, while shipments to Denmark, largely for re-export, increased 30% on June 2015.
'Very encouraging'
Current pig prices are ‘very encouraging’ according to pig farmer Richard Longthorp.
The former chairman of the National Pig Association said that the continued rise in prices is ‘very welcome’ but warned that the increase in the cost of imported feed is a concern.
Pig prices are currently at a 10-month high as the steady recovery continues.
The rise in prices is in part thanks to Britain’s momentous decision to leave the EU.
The continued weakening of Sterling against the Euro has made British pork increasingly competitive against European imports.
The National Pig Association has said British pig producers have a 'bright future' outside the European Union.
"British pork has made considerable inroads to world markets over the past two years and we are confident this will continue, as a result of British pork's premium characteristics," the NPA said.
Despite the recent positive move on prices there is still concern among pig farmers.
Richard said that the weakening pound will also bring with it increased feed prices and warned that the industry still has a lot to do.
