Pig producers share of retail price hits highest in 31 months

Pig producers are receiving a higher return
Pig producers are receiving a higher return

The share of pork retail prices received by pig producers rose in February, averaging 40.5% - hitting its highest point in 31 months.

According to AHDB Pork, this represents half a percentage point increase on January and the largest share since July 2014.

While the EU-spec APP lost 0.70p/kg on the month during February, the average retail price recorded a greater decline of 6.7p/kg. This lead to the increase in the producers share month on month.

Despite pig prices decreasing marginally in February, they remained substantially higher than the same month a year earlier. Therefore, the producers share received was 10.5 per cent higher year on year.

A survey which keeps an eye on the levels of British pork in supermarkets has noted that retailers are now importing considerably more bacon than a year ago, when UK producer prices were in a downward spiral.

The latest AHDB Pork Porkwatch survey was described as 'disappointing' by the National Pig Association (NPA).

But UK pork exports have been the highest they have ever been since 1999, according to figures by AHDB Pork.

In December, the volume of UK pig meat exports increased on the year for the first time since August.

At over 15,600 tonnes, shipments of pig meat from the UK were 3% higher than December 2015 and the highest volume exported in the month of December since 1999.