AHDB Pig Market Weekly
27 February 2012
AHDB UK Market Survey - 24 February 2012
The value of UK red meat exports increased by a
quarter in 2011 as tight global supplies resulted in
increased export volumes and higher unit prices.
Increased value of trade in 2011
The
total value of exports was £1,048 million, with beef
exports accounting for £437 million, sheep meat
exports £380 million and pig meat exports £231
million.
The value of beef exports represented an increase of 32
per cent on the year, as volumes increased by 29 per
cent and the price two per cent. The increased volume
was attributable to a shortage of beef across a number
of markets on the continent resulting from increased
exports to non-EU markets from these countries. The
value of sheep meat exports was 19 per cent higher on
the year. The export price increased seven per cent
while volumes were 11 per cent higher. The increased
volume was attributable to higher production and a
shortage of product on the continent as a result of lower
supplies from New Zealand. With tight supplies of
lamb in most markets, there was increased competition
for product resulting in record prices during 2011. In
2011, the value of pig meat exports was 19 per cent
higher year on year as unit values increased two per
cent and volumes were 15 per cent higher.
The market conditions which have led to an increase in
export values have also resulted in the value of imports
increasing. Tight supplies of product in key producing
nations has generally resulted in lower supplies of red
meat globally, which has limited import volumes for
beef and sheep meat especially. The total value of
imports in 2011 was five per cent higher year on year at
£2,664 million. Beef imports accounted for £855
million, sheep meat imports £411 million and pig meat
imports £1,399 million.
Despite beef imports falling one per cent in volume
terms the value increased 11 per cent as a result of a 13
per cent increase in the import price. This increase in
price was the result of considerably higher procurement
costs, with farmgate prices in most countries rising in
2011. Similarly sheep meat imports fell 13 per cent as
shortages in the majority of trading regions were apparent, these tight supplies resulted in substantially higher prices for sheep and as a result the import
price increased 23 per cent on the year.
The total value of pig meat imports increased two per cent on the year as a six per cent increase in the
price offset a four per cent decline in volume. There was variation between bacon and pork. Bacon
import volumes were down 10 per cent, with the value six per cent lower. In contrast, as the volume of
pork imports increased by two per cent and the price was seven per cent higher, the value of pork
imports increased 10 per cent to £721 million.
Cattle market trends
Prices
In week ended 18 February 2012 the deadweight
prime cattle average price increased two pence
on the week to 334.7p per kg. With the colder
weather in the last two weeks potentially
boosting sales of beef and the availability of
finished cattle remaining tight this price is the
highest achieved so far this year. Prices for all
categories of cattle increased with the largest
being a four pence rise in the average R3 young
bull price to average 330.3p per kg.
In week ended 22 February, despite prime cattle
throughputs at GB auction markets declining six
per cent on the week, the average prime cattle
price was only marginally higher. This was
largely as a result of a two pence fall in the
average steer price, down to 187.4p per kg.
Heifer and young bull average prices both
increased a penny on the week to 193.2p and
181.1p per kg respectively.
Trade
Exports of fresh and frozen beef in December
totalled 10,500 tonnes five per cent higher year
on year. Volumes to the Netherlands fell five per
cent but this was more than offset by a 30 per
cent increase in shipments to Ireland and a 72
per cent increase in trade to France.
In the year as a whole fresh and frozen beef
exports totalled 142,500 tonnes, 29 per cent
higher on the year. Shipments to the Netherlands
increased 39 per cent, to Ireland 25 per cent and
to France 31 per cent. Overall, volumes to other
EU Member States increased over a quarter and
still accounted for the bulk of all shipments.
Despite relatively small volumes exports outside
the EU grew substantially. Volumes to Hong
Kong increased eightfold, to Ghana fourfold, and
there were increases to numerous other markets.
Imports in December declined by more than four
per cent year on year to 23,000 tonnes as
supplies in a number of markets remained tight.
Supplies from Ireland were five per cent lower on
the year, from Uruguay they were down 12 per
cent and there was a 33 per cent fall in shipments
from Australia. Volumes from Argentina were
down a half, while product from Botswana
remained banned.
In 2011, import volumes were down one per cent
at 235,000 tonnes. Notably supplies in South
America and Africa were tight. Lower volumes
were somewhat offset by increased imports from
a number of other EU Member States, Australia
and New Zealand.
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