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Why Freedom Pigs Need a Substantial Premium

by 5m Editor
21 May 2012, at 6:30am

UK - A slightly underwhelming day for sellers and although the DAPP put on 0.18p and now stands at 148.39p, mixed messages were being received from the shout market despite Tulip opening the batting by standing-on at 148p, where Woodhead remains significant front runner holding firm at 150p with Cranswick standing-on and Gill following Vion's move by dropping a penny, writes Peter Crichton.



As a result the scoreboard now reads...

150p Woodhead
148p Gill
148p Tulip
147p Cranswick
146p Vion

Some sellers were hoping for a little bit more action on the spot market, but sadly this was not to be the case and spot bacon generally traded within a fairly wide 148p–152p range.

Although there has been much concern over the eurozone crisis in the past week, as it turned out the euro closed on Friday at 80.53p worth a tad more than a week earlier.

After several weeks of falling values cull sow quotes have stabilised and in some cases added a penny perhaps given some comfort that the euro seems to have levelled out for the time being with the result that most quotes were in the 118p–122p range, although sellers with big numbers were able to coax an extra penny or two.

Feed prices however remain a major talking point with ex-farm feed wheat quoted at around 3167/tonne and LIFFE wheat futures quotes continuing to gain ground with July at 3176.50/tonne and November also firmer at 3156.75/tonne.

Soya however remains the dearest items on the pig feed menu quoted in the 3350/tonne region.

As a result high feed prices are continuing to have a serious impact on weaner values and the Agriculture and Horticulture Development Board 30kg ex-farm average weaner price has dropped yet again to 344.29/head and space remains at a premium and unless further reinvestment takes place in finishing accommodation, this trend is likely to get worse.

To add to finishers' pain those selling Freedom Food pigs are having to scour the country to find suitable supplies of straw with collected prices in the 370/tonne region now commonplace, which is another reason why premiums for Freedom Food pigs need to be substantial to justify the additional expense.