SPP hits file excessive, says AHDB

Posted on Aug 11, 2023

In keeping with AHDB, the EU normal pig value (SPP) has hit a file excessive within the month of July, reaching as much as 225.4p within the final week of July.

For the primary time within the final 10 quarters, value of manufacturing has had a constructive internet margin.

In comparison with the earlier month, costs rose 2.1p whereas weekly good points averaged 0.3p. SPP was virtually 30p up by the tip of the month when measuring in opposition to the 2022 July costs, and it was up greater than 60p from the five-year common.

AHDB knowledge reveals a mean of 153,400 pigs have been slaughtered per week in July, taking the month-to-month whole per head to 613,400. Although costs have been up, July noticed a fall in head, with 1,800 lower than June and 118,500 lower than the identical interval in 2022.

There was a 370g enhance in carcase weights in comparison with these seen in June, averaging 88.9kg in July. Within the closing week of July, common charges sat above 89kg.

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Manufacturing prices in Q2

As a consequence of feed prices falling and pig costs rising, the estimated value of manufacturing for Q2 2023 was 196/kg, placing internet margins at £22 a head and +25p/kg. This was the primary constructive internet margin for the final 10 quarters.

Feed prices are actually at an approximate 123p/kg for Q2 2023, lowering 52p from the identical interval in 2022. Within the earlier 10 consecutive quarters, feed prices had risen from about 100p/kg in Q3 2020 to a peak of 175p/kg in Q2 2022.

The elevated constructing materials prices following the worldwide pandemic noticed total constructing prices rising by 12p since Q3 2020, rising the price of manufacturing. Elevated rates of interest and finance prices additionally contributed to the rising prices.