No Respite on Pork
I can’t believe Christmas is almost upon us once again. I am hoping for everyone trading is strong, because I know how hard it’s been for all of us this year.
Unfortunately, on the supply and pricing front, the pain just continues. In this regard, I just wanted to give you a quick snapshot of the current pork market.
1. The colder weather in the months of June and July has seen the pig weights come back from an average of 79kg at the start of June to 75kg at the start of August. The trend for pig weights from now until the end of the year will trend down, meaning less pig meat available.
2. The first 6 months of pigs killed in 2019 are down 4.2% on pigs killed for the same period in 2018.
3. The forecast pig numbers for the second half of the year are back 6% on the first 6 months actual kill, this is helping drive the pig market price upwards.
4. There is little frozen stock in the freezer to help account for the lack of numbers being killed.
5. The high price of lamb and beef in the saleyards is also adding to the pig farm gate price as consumers look for alternative protein.
6. The African Swine Flu in China is also adding fuel to the price increase as China is looking for pig meat and protein to fill the void of their losses on farm.
7. Smallgoods producers are now finding it hard to source imported frozen pork and are running low on stocks and are now forced to procure locally produced pork meat.
8. There is also conversation that the mating period in January and February was poor and this will have an impact in the next few months and processes are trying to secure pork meat for this period before the Christmas period hits.
I wish I had better news, but it really does continue to be the most challenging year I can remember. Hang in there.
Until next week, stay healthy