Pigs
Pig prices have continued to increase. In the week ending 19th June the GB EU-Spec SPP rose by a further 1.17p per kg on the week to average 156.99p per kg. Although still 7.94p behind the price for the same week in 2020, it is now comfortably (7.28ppkg) above the five-year average. The longstanding rule-of-thumb is that margins should be achievable for efficient pig producers if the pig price is above 140p per kg (although current high feed prices makes this more challenging). Back in February/March the SPP dropped to 139p per kg, but has been rising since. Estimated slaughter numbers are up on the week by 2% at 175,800 head. This is 23,800 more than last year and 13,500 head more than the 5-year average for the same week, meaning demand is driving the price increase.
Lamb
The lamb price has been exceptional. But prices have seen a sharp drop over the week ending 23rd June. There is always a seasonal decline at this time of year as numbers of new season lamb (NSL) coming to market increase considerably. Even so prices are still good at 230.58p per kg liveweight. There may also have been a little bit of early marketing of lambs, some not quite ready, to try and capitalise on the high prices, as numbers were 8% higher than last year and also the year before. At this time of year, GB shifts to being a net exporter for sheep meat and as British lamb has been at a premium to French (our key destination) over recent weeks, export demand will be reduced.
Beef
In contrast to lamb, the cattle price has risen over the latest week. After six weeks of decline, for the week ending 19th June the deadweight price has risen for all categories of cattle. The all prime average price was up by 3.4p per kg to 393.2p per kg deadweight. The price remains strong at 32.7p per kg above the same week last year and 42.4p per kg above the five-year average. Domestic supplies remain tight, prime slaughter numbers were down 2% on the week and 7% on the year. It will be interesting to see what happens when Covid restrictions are lifted as the switch to home consumption appears to have been in domestic producers’ favour as a lot of food service product is imported, whilst that on the supermarket shelves tends to be GB-sourced.