Irish pigmeat prices have hit a 20-year high in the last six months, driven by demand from southeast Asia. In March 2019, prices were 28c/kg margin over feed, some 22c/kg less than breakeven levels.
Irish pigmeat prices have hit a 20-year high in the last six months, driven by demand from southeast Asia.
In March 2019, prices were 28c/kg margin over feed, some 22c/kg less than breakeven levels.
However African swine fever (ASF) has driven demand for pigmeat and pushed the price to 80c/kg margin over feed.
Pig prices are now €1.84 to €1.86/kg.
In China, domestic pigmeat prices soared by 60% between July 2019 and October 2019, due to widespread loss and culling of pig herds.
In 2016, a 1% increase in pig meat imports by China was responsible for an increase of 15-20c/kg in Irish pig prices.
Increase
Speaking at the Teagasc Pig Farmers’ Conference in the Horse and Jockey, Co Tipperary on Tuesday, Teagasc’s head of the knowledge transfer pig development department, Ciarán Carroll said that prices may rise even higher.
“Talking to farmers at the event, they’re hoping to see another rise in prices on Friday, and I hope it does work for them. Depending on who you’re talking to, we could be looking at a one to three-year benefit [from Chinese demand], or Rabobank would suggest that it could be up to 10 years’ benefit,” he said. However, Carroll warned: “The proviso is that we keep it [ASF] out of Ireland”.
Exports
Ireland exports 50% of pigmeat produced in the country and the threat of ASF in Ireland is one to remain cautious of, he said. Pigmeat exports to the Philippines and Australia are growing, while Bord Bia has been working towards building access to the Vietnamese and South Korean markets, which have also been affected by ASF outbreaks.
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